Hi everyone,
Letโs start with this very very interesting tweet tread that basically ties the RRP (reverse repo) to the change from Libor to SOFR. After the funny meme summarize.
To meme summarize:
Central banks and SHF: And we took these BONDS that are backed by LOANS that are backed by HOMES and use them as backing for NEW LOANS to make NEW BONDS and then repeat, what can possibly go wrong?
Everybody else: So how does that exactly benefits us? 0.
โโโโโ
RRP TIES WITH LIBOR TO SOFR
Letโs start learning.
The changes from LIBOR to SOFR has been one of my biggest catalyst from when THE CHAOS THEORY was created and the crazy melon guide to the moon (months ago).
Please read this tweet before continuing reading.
https://twitter.com/thelastbearsta1/status/1471925082532499465?s=21 ๐๐๐ value info dont skip
This tweet provides clear information on how central banks and Libor manipulators are using the RRP to get โgoodโ short term collateral, at the same time that causes a manipulation on the 3mo/ 1yr/ 2yr/ 3yr UST yields.
The FED and banks are twisting the yield curves. Might be the new way to manipulate SOFR since the new interest rates are calculated with those yields and not self calculated.
In my honest opinion, they been using RRP to prepare for whatโs coming, this is so dangerous and the minimum error can cause a massive collapse of the entire system.
โโโโโโโโ-
Why is this a big deal?
THIS IS THE MOTHER OF ALL BAGS OF SHIT. We are talking about amounts bigger than the economy itself.
A massive portion of the derivatives market (itโs on the quadrillions now), is attached and linked to all the banks loans, tons of bets and debt with leverage that is basically bigger than economy itself, so, AFFECTS EVERYONE in this earth directly or indirectly, the magnitude need to be understood.
Check for yourself, this is the list of bag holder and how much shit:
https://imgur.com/a/CEETnne (so many trillions!) ๐๐
Just JP Morgan itself is sitting on over 53 TRILLION!
https://i.imgur.com/AuR8SOB.jpg
Notice that Goldman is also leverage 200:1 thatโs insane!
Photo of world assets as reference:
https://imgur.com/gallery/vv33GAA (this is from 2019 and it was already that big). ๐๐
As a reference for magnitude:
1 million seconds is 0.0317 years 1 billion seconds is 31.17 years 1 trillion seconds is 31,709 years
This changes were going to be in effect at the end of 2019 but on September 17 almost crashed the market, then moved the dat
... keep reading on reddit โกDo we know when the rates change from LIBOR to sofr? Is it Jan 1? I heard this would have a major impact and it was postponed 2 years and suppose to take effect in 2022.
All the banks don't seem to like this change and have been heavily resisting it. I haven't heard anything on this topic lately. Wanted to check if anyone else is more wrinkled
Maybe it's not something that may affect the stock or the company but wanted to ask.
I remember reading quite a bit about the switch from LIBOR to SOFR over the summer before the date was pushed back, but since then I don't think I've seen a single post about this on any of the stock subs I'm subscribed to. This seems strange since from the little bit I do understand (I am a dumb ape after all) it seems like the switch to SOFR will have enormous consequences for any stock with a large number of open derivatives (like GME). And the new switchover date is coming up fast (December 31st). It's there a reason no one is really talking about this lately? Do people feel like it's unlikely to affect GME much or is it just impossible to predict how it will be affected? I wish I could answer these questions myself but starting a conversation is better than nothing IMO
What the title says. Iโve read in other subs itโs going to possibly blow up the market. After a quick google search it sounds like itโs going to be an easy transition. Iโm just curious what everyone in this sub has to say and if someone smarter than me could explain it a little better.
Anybody know what the deal is with Hajek? Right now heโs basically just in the press box every game and Gallant has made it clear Tinordi is ahead of him in the depth chart. So why do we not send him down. At least let him play in the ahl or even trade the poor kid for nothing. I know heโs not good at the nhl level but I feel bad for the kid not getting a chance to play anywhere.
Good day Apes....it seems another fine day of fuckery is playing out for us. I have a question for the more wrinkly among us. I remember reading at some point through out the last year that the gummint tried switching from LIBOR to SOFR at least once or twice before and it caused some chaos in the markets and was abandoned. Seeing as how it was switched over as of Jan 1 yet again....I was just wondering approximately how long it took before for said chaos to rear its ugly head?? In the end, something is gonna ignite this rocket...whether it be DRS...SOFR change over...the Fed ending QE over the next few months and raising rates...lots of bullish things to look ahead to. Remember people, we are making history and that is never easy....welcome to the fall of Rome 2.0. Stay diamond my friends.
Barclays UK is sending out messages to people who have used their account to transfer funds to Binance stating they will suspend the transactions.
"Help keep your money safe" lol.
This same bank Barclays had manipulated LIBOR rates and caused damages to the tune of billions and paid a fine of $450m for their illegal actions and violating the trust of market participants.
>In June of 2012, Barclays plc admitted that it had manipulated LIBORโa benchmark interest rate that was fundamental to the operation of international financial markets and that was the basis for trillions of dollars of financial transactions. Between 2005 and 2009 Barclays, one of the world's largest and most important banks, manipulated LIBOR to gain profits and/or limit losses from derivative trades. In addition, between 2007 and 2009 the firm had made dishonestly low LIBOR submission rates to dampen market speculation and negative media comments about the firm's viability during the financial crisis. In settling with U.K. and U.S. regulators the firm agreed to pay $450 million in fines. Within a few days of the settlement, Barclays' CEO, Robert Diamond, had resigned under pressure from British regulators.
Source: https://www.hbs.edu/faculty/Pages/item.aspx?num=43888
Now the same bank wants to preach where one can and cannot spend their own funds.
Authoritarian banks which undertake illegal manipulative schemes behind the curtains but without any shame pretend they are the gatekeeper of everyone's finances like this are the very reason crypto came into being and has grown over the past decade.
[Nuovo DD] 31 dicembre Libor cambia in SOFR. Che cosa significa? Economia appesa a un passo!
Ciao a tutti,
Cominciamo con questo tweet molto molto interessante che sostanzialmente lega il RRP (reverse repo) al passaggio da Libor a SOFR. Dopo il meme divertente riassumere.
Per riassumere in meme:
Banche centrali e SHF: E abbiamo preso queste OBBLIGAZIONI garantite da PRESTITI garantiti da HOMES e li abbiamo utilizzati come garanzia di NUOVI PRESTITI per fare NUOVE OBBLIGAZIONI e poi ripetere, cosa puรฒ andare storto?
Tutti gli altri: quindi in che modo questo ci avvantaggia esattamente? 0.
โโโโโ
RRP LEGA CON LIBOR A SOFR
Iniziamo a imparare.
I cambiamenti da LIBOR a SOFR sono stati uno dei miei piรน grandi catalizzatori da quando รจ stata creata LA TEORIA DEL CAOS e la folle guida del melone sulla luna (mesi fa).
Si prega di leggere questo tweet prima di continuare a leggere.
https://twitter.com/thelastbearsta1/status/1471925082532499465?s=21 ๐๐๐ informazioni sul valore non saltare
Questo tweet fornisce informazioni chiare su come le banche centrali e i manipolatori del Libor stanno utilizzando l'RRP per ottenere "buone" garanzie a breve termine, provocando allo stesso tempo una manipolazione sui rendimenti UST a 3 mesi / 1 anno / 2 anni / 3 anni.
La FED e le banche stanno stravolgendo le curve dei rendimenti. Potrebbe essere il nuovo modo di manipolare il SOFR poichรฉ i nuovi tassi di interesse sono calcolati con quei rendimenti e non autocalcolati.
Nella mia onesta opinione, hanno usato RRP per prepararsi a ciรฒ che sta arrivando, questo รจ cosรฌ pericoloso e l'errore minimo puรฒ causare un enorme collasso dell'intero sistema.
โโโโโโโโ-
Perchรฉ รจ un grosso problema?
QUESTA ร LA MADRE DI TUTTI I SACCHI DI MERDA. Si tratta di importi superiori all'economia stessa.
Una porzione massiccia del mercato dei derivati โโ(ora รจ sui quadrilioni), รจ collegata e collegata a tutti i prestiti delle banche, tonnellate di scommesse e debiti con una leva finanziaria che รจ sostanzialmente piรน grande dell'economia stessa, quindi INFLUISCE TUTTI in questa terra direttamente o indirettamente , la grandezza deve essere compresa.
Controlla tu stesso, questa รจ la lista dei portaborse e quanta merda:
https://imgur.com/a/CEETnne (tanti trilioni!) ๐๐
Solo la stessa JP Morgan รจ seduta su oltre 53 TRILIONI!
https://i.imgur.com/AuR8SOB.jpg
Nota che Goldman ha anche una leva di 200:1 che รจ folle!
Foto delle risorse mondiali
... keep reading on reddit โก
Fair warning - this is a tangent and only indirectly links back to GameStop. Also posted this on superstonk, GME, and GMEJungle.
Recent happenings: I read this article, where the Federal Reserve told a judge not to scrap LIBOR because it could fuck up the markets. Naturally, I was curious. (EDIT: The news article linked below seems to have removed the quote in question from the article. The link to the filing underneath the quote stands by the substance of the quote)
August 16th
https://www.cfodive.com/news/sofr-gains-but-still-has-far-go-libor-replacement-analysts/605226/
> The Federal Reserve told a judge not to scrap Libor as requested by consumers in a lawsuit because it would pose a risk to financial stability and undermine years of global planning for a transition to a new benchmark for borrowing rates.
Link to the Federal Reserve filing
> Business lending and securitizations need to speed the switch to LIBOR alternatives, the Financial Stability Board (FSB) said last month, warning of the risk of financial instability.
> โThe business loan market has been especially slow to begin transitionโ from LIBOR to a new benchmark rate, according to the FSB, a monitoring body that includes the Group of 20 nations and European Commission.
> โMost banks are continuing to offer LIBOR as the primary or only floating-rate [adjustable rate - remember the stripper scene in The Big Short] business loan option,โ the FSB said, adding that โborrowers report that lenders have provided them with limited information about LIBOR alternatives.โ
What is LIBOR?
https://en.wikipedia.org/wiki/LIBOR
> The London Inter-bank Offered Rate is an interest-rate average calculated from estimates submitted by the leading banks in London. Each bank estimates what it would be charged were it to borrow from other banks.
Why does it concern GameStop?
https://en.wikipedia.org/wiki/Libor_scandal
> Because Libor is used in US derivatives markets, an attempt to manipulate Libor is an attempt to manipulate US derivatives markets, and thus a violation of American law. Since mortgages, student loans, financial derivatives, and other financial products often rely on Libor as a reference rate, the manipulation of submissions used to calculate those rates can have significant negative effects on consumers and financial markets worldwide.
Well that sounds worrying.
... keep reading on reddit โกSo I started digging today. I made a DD and then bounced it off of u/additional-ad5055. I think I have started to scratch the surface on why RRP has been huge this year and how that points to a major liquidity crisis. I apologize for mistakes or format issues, this is done all on my phone.
https://i.imgur.com/tecXFiM.jpg
London Inter-Bank Offered Rate (LIBOR) is the rate at which banks lend to each other. A rate that a lot of different financial instruments are based on.
https://en.m.wikipedia.org/wiki/Libor
Secured Overnight Financing Rate (SOFR) is the new rate based off of the fed Overnight repo rate.
https://en.m.wikipedia.org/wiki/SOFR
https://i.imgur.com/jTjkm9m.jpg
I donโt know why they care about loans maturing in 2023 because SOFR kicks in January 1st 2022. So Iโm thinking the exposure is a lot higher for 2021.
https://i.imgur.com/1d1yofZ.jpg
Regardless there is a shit ton of loans based on the LIBOR rate.
https://i.imgur.com/I6Yp8NP.jpg
Banks will not be able to use LIBOR as of January 1st.
https://i.imgur.com/NarxNlS.jpg
Almost all loans will transfer to SOFR rate except for in loans where they โlack ARRC standard language.โ
https://i.imgur.com/K7OFNQ1.jpg
Those will be transferred to the ABR which is .50% above the federal funds effective rate.
https://i.imgur.com/4cSnWan.png
The top 25 banks hold $250 trillion in derivatives on their balance sheets. Yikes.
https://i.imgur.com/AuR8SOB.jpg
Notice JP Morgan has the most derivatives on its books at 52.6 Trillion. Side note Goldmanโs 200:1 ratio of derivatives to assets is just funny. A true YOLO.
https://i.imgur.com/gkGSKWo.jpg
JP Morgan you say? But thereโs no way theyโre still doing thisโฆ
https://i.imgur.com/aUrDmLM.jpg
Already went over all of the financial instruments that rely on LIBOR but wanted to remind you becauseโฆ.
https://i.imgur.com/ZctBAWz.jpg
โฆthe fine paid for manipulating LIBOR is essentially the cost of doing business. So yea they probably are still doing this.
https://i.imgur.com/jRHAfjN.png
Credit risk as in if you colluded with the rest of the banks to manipulate the rates for a profit.
https://i.imgur.com/iu6wnWf.jpg
https://i.imgur.com/T1RaNLJ.jpg
The LIBOR and SOFR rates are pretty close but historically SOFR is a lot more volatile.
https://i.imgur.com/jIvm42O.png
See how Iโm 2019 the rate spiked up?
https://i.imgur.com/9vpfAa1.jpg
https://i.imgur.com/GYviIuL.jpg
... keep reading on reddit โกHi everyone,
Funny ELI5:
Central banks and SHF: And we took these BONDS that are backed by LOANS that are backed by HOMES and use them to back NEW LOANS, and then repeat, what can possibly go wrong?
Retail: So how does that exactly benefits us? Lol
And then I started blastingโฆ. So anyway.
The changes from LIBOR to SOFR has been one of my biggest catalyst from when THE CHAOS THEORY was created and melons guide to the moon (months ago).
Why is this a big deal?
THIS IS THE MOTHER OF ALL BAGS OF SHIT. We are talking about amounts bigger than the economy itself.
A massive portion of the derivatives market (itโs on the quadrillions now), is attached and linked to all the banks loans, tons of bets and debt with leverage that is basically bigger than economy itself, so, AFFECTS EVERYONE in this earth directly or indirectly, the magnitude need to be understood.
Check for yourself, this is the list of bag holder and how much shit:
https://i.imgur.com/4cSnWan.png (so many trillions!)
Just JP Morgan itself is sitting on over 52 TRILLION!
https://i.imgur.com/AuR8SOB.jpg
Notice that Goldman is also leverage 200:1 thatโs insane!
Photo of world assets as reference:
https://imgur.com/gallery/vv33GAA (this is from 2019 and it was already that big).
As a reference for magnitude:
1 million seconds is 0.0317 years 1 billion seconds is 31.17 years 1 quadrillion seconds is 31.17 MILLION years.
After everything that is going on, I kinda forgot about it and havenโt seen anyone mentioned it.
This changes were going to be in effect at the end of 2019 but on September 17 almost crashed the market, then moved the date due to Covid to June 2021 and delayed again to 31 of December.
โconvenientlyโ Covid came to play (not saying thatโs the reason why Covid exist) but definitely used as a scapegoat to delay those changes to mid 2021 then 31 of December.
This time to December 31, 2021.
Yes! The day in which everyone is gonna be so focused in the New Yearโs Eve and the fireworks and everything, and not be looking into this.
Let me refresh you how big the change from LIBOR to SOFR is. From the DD above that is months old.
โโโโโโโโโโโโ
LIBOR to SOFR
READ THE CHAOS THEORY DD](https://www.reddit.com/r/Superstonk/comments/mseyai/chaos_theory_the_final_connection/) to have the proper DD about this. (recommend the whole saga!!)
Changes from Libor to SOFR were meant to happen in 2022, but guess what?
They pushed to June 2021!!!
Update: the DD was written before Ju
... keep reading on reddit โกHi everyone,
The changes from LIBOR to SOFR has been one of my biggest catalyst from when THE CHAOS THEORY was created and melons guide to the moon (months ago).
Both DDs a must read for apes in my opinion.
https://www.reddit.com/r/GME/comments/n2hjnk/33_the_ultimate_dd_guide_to_the_moon_crazy_melon/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
CHAOS THEORY LINKS BELLOW
After everything that is going on, I kinda forgot about it and havenโt seen anyone mentioned it.
This changes were going to be in effect at the end of 2019 and when they tried to implement it, it crashed the market.
Then โconvenientlyโ Covid came to play (not saying thatโs the reason why Covid exist) but definitely used as a escape goat to delay those changes to mid 2021.
I remember being excited when the day came, but suspiciously got delayed again.
This time to December 31, 2021.
Yes! The day in which everyone is gonna be so focused in the New Yearโs Eve and the fireworks and everything, and not be looking into this.
Let me refresh you how big the change from LIBOR to SOFR is. From the DD above that is months old.
โโโโโโโโโโโโ
LIBOR to SOFR
READ THE CHAOS THEORY DD](https://www.reddit.com/r/Superstonk/comments/mseyai/chaos_theory_the_final_connection/) to have the proper DD about this. (recommend the whole saga!!)
Changes from Libor to SOFR were meant to happen in 2022, but guess what?
They pushed to June 2021!!!
Update: the DD was written before June and I was so excited just to find out, was pushed again to December 31 this year.
Original schedule changes here
This is massive!! Why?
Banks used LIBOR to manipulate their self created and self reported interest rates in order to be favorable and give away (lending) money left right and center. Where did tons of that money go? To HEDGEFUNDS, management and so on! The fat bonuses and feels to me like the perfect way to money launder (this is speculation of my side, educated one tho).
They borrowed money from banks for almost no interest rates no matter how the economy and inflation was.
Update: They kept on printing, to the point the inflation is 6.2% and everything itโs going up and up! during an unprecedented pandemic!!! For what? SHORTING and INCREASE THE WEATH GAP.
... keep reading on reddit โกHi everyone,
The changes from LIBOR to SOFR has been one of my biggest catalyst from when THE CHAOS THEORY was created and melons guide to the moon (months ago).
Both DDs a must read for apes in my opinion.
https://www.reddit.com/r/GME/comments/n2hjnk/33_the_ultimate_dd_guide_to_the_moon_crazy_melon/?utm_source=share&utm_medium=ios_app&utm_name=iossmf
CHAOS THEORY LINKS BELLOW
After everything that is going on, I kinda forgot about it and havenโt seen anyone mentioned it.
This changes where going to be in effect at the end of 2019 and when they tried to implement it, it crashed the market.
Then โconvenientlyโ Covid came to play (not saying thatโs the reason why Covid exist) but definitely used as a escape goat to delay those changes to mid 2021.
I remember being excited when the day came, but suspiciously got delayed again.
This time to December 31, 2021.
Yes! The day in which everyone is gonna be so focused in the New Yearโs Eve and the fireworks and everything, and not be looking into this.
Let me refresh you how big the change from LIBOR to SOFR is. From the DD states above that is months old.
โโโโโโโโโโโโ
LIBOR to SOFR
READ THE CHAOS THEORY DD](https://www.reddit.com/r/Superstonk/comments/mseyai/chaos_theory_the_final_connection/) to have the proper DD about this. (recommend the whole saga!!)
Changes from Libor to SOFR were meant to happen in 2022, but guess what?
They pushed to June 2021!!!
Update: the DD was written before June and I was so excited just to find out, was pushed again to December 31 this year.
Original schedule changes here
This is massive!! Why?
Banks used LIBOR to manipulate their self created and self reported interest rates in order to be favorable and give away (lending) money left right and center. Where did tons of that money go? To HEDGEFUNDS, management and so on! The fat bonuses and feels to me like the perfect way to money launder (this is speculation of my side, educated one tho).
They borrowed money from banks for almost no interest rates no matter how the economy and inflation was.
Update: They kept on printing, to the point the inflation is 6.2% and everything itโs going up and up! during an unprecedented pandemic!!! For what? SHORTING and INCREASE THE WEA
... keep reading on reddit โกHi everyone,
The changes from LIBOR to SOFR has been one of my biggest catalyst from when THE CHAOS THEORY was created and melons guide to the moon (months ago).
Why is this a big deal?
THIS IS THE MOTHER OF ALL BAGS OF SHIT. We are talking about amounts bigger than the economy itself.
A massive portion of the derivatives market (itโs on the quadrillions now), is attached and linked to all the banks loans, tons of bets and debt with leverage that is basically bigger than economy itself, so, AFFECTS EVERYONE in this earth directly or indirectly, the magnitude need to be understood.
Check for yourself, this is the list of bag holder and how much shit:
https://i.imgur.com/4cSnWan.png (so many trillions!)
Just JP Morgan itself is sitting on over 52 TRILLION!
https://i.imgur.com/AuR8SOB.jpg
Notice that Goldman is also leverage 200:1 thatโs insane!
Photo of world assets as reference:
https://imgur.com/gallery/vv33GAA (this is from 2019 and it was already that big).
As a reference for magnitude:
1 million seconds is 0.0317 years 1 billion seconds is 31.17 years 1 quadrillion seconds is 31.17 MILLION years.
After everything that is going on, I kinda forgot about it and havenโt seen anyone mentioned it.
This changes were going to be in effect at the end of 2019 but on September 17 almost crashed the market, then moved the date due to Covid to June 2021 and delayed again to 31 of December.
โconvenientlyโ Covid came to play (not saying thatโs the reason why Covid exist) but definitely used as a scapegoat to delay those changes to mid 2021 then 31 of December.
This time to December 31, 2021.
Yes! The day in which everyone is gonna be so focused in the New Yearโs Eve and the fireworks and everything, and not be looking into this.
Let me refresh you how big the change from LIBOR to SOFR is. From the DD above that is months old.
โโโโโโโโโโโโ
LIBOR to SOFR
READ THE CHAOS THEORY DD](https://www.reddit.com/r/Superstonk/comments/mseyai/chaos_theory_the_final_connection/) to have the proper DD about this. (recommend the whole saga!!)
Changes from Libor to SOFR were meant to happen in 2022, but guess what?
They pushed to June 2021!!!
Update: the DD was written before June and I was so excited just to find out, was pushed again to December 31 this year.
Original schedule changes here
[https://webstorage.paulhastings.com/Documents/PDFs/timeline-for-libor-transition.pdf?sfvrsn=363ea8ab_2](https://webstorage.paulhastings.com/Documents/PDFs/time
... keep reading on reddit โกOne of you fine Apes posted about LIBOR to SOFR at the end of the month, and my wife had a test question about LIBOR.
She just started at UBS (I know I know) and she had a test question that pertained to LIBOR and she asked me for help and I got the question right because I read your DD about LIBOR.
Intentional 250 character limit.
DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS. DRS.
