If people are angry because of the vaxx mandates just wait how outraged they will be once the European governments start mandating electric cars. Nikola Tesla is rolling in his grave.

It’s already happened in PommieBastardLande. The feckless cucked-out PM there, Boris the Floppy-Haired Sheepadoodle, has made it a matter of government policy to ensure that no petrol- or diesel-powered cars will be sold after 2030. Only problem is that the Limeys aren’t building anything like the amount of generation capacity that they will need in the future – they are shutting down their nuclear plants, gas turbines, and coal stations, and going all-in on pointless useless eco-weenie wind turbines and solar panels.

None of that is going to meet the demand surge that they will experience in very short order. The Limeys are already looking at a severe energy crisis this winter as prices for natural gas and other hydrocarbons spike upwards, and there is already quite a bit of panic among the Limeys about whether they will have meat this winter.

“Green” thinking always leads to the same outcomes as “red” thinking – impoverishment, starvation, and suffering. Always and every time.

Thanks for the additional explanations, they are very useful.

Which is why it was equally true that the money spigot dried up AND demand went through the roof at the same time. It’s also why the Fed’s biggest concern right now is inflation. Web of lies.

Exactly. The financial services part of the economy is at this point essentially a parasitic entity that is killing off the real productive economy. It has entangled itself into the whole system in such a way that the financial sector cannot be excised without killing the host, so to speak. It’s a disaster on all possible fronts.

What comes next will be stunning chaos. It will be brutal, where people won’t believe what is happening is really happening. The best thing I can think of doing is becoming comfortable with the uncomfortable in a collapsing world.

Great financial analysis by you Didact and the commenters. Learned something new, thank you.

If people are angry because of the vaxx mandates just wait how outraged they will be once the European governments start mandating electric cars. Nikola Tesla is rolling in his grave.

Don’t forget the military and social benefits spending as well.

With or without coof, they would have found excuses to print their currencies to oblivion.

I hope these people get a good whiff of Mammon’s feet in hell. Truly despicable people.

This is a good color add, thank you

Some added color on liquidity. When banks lock loans, they hedge them with securities. Banks and lenders will sell securities to offset the expected gains they make from the loans. So if you’re sitting on 100M in loans, you should have roughly 100M worth of securities to “sell” on the open market. You exercise these one of two ways: you can buy them back when you trade (sell) the 100M, or if you have the clearance with Fannie or Freddie, you can fill those securities with your loans.

So if you have a 100M pipeline, you have equally 100M in assets and liabilities. If you can’t sell your loans, you have to buy those securities back with money you don’t have. If you can’t originate loans, the agency banks that sell securities cannot float them, and out debt economy grinds to a halt. Which is why it was equally true that the money spigot dried up AND demand went through the roof at the same time. It’s also why the Fed’s biggest concern right now is inflation. Web of lies.

We scrambled and survived, but the Agencies (Fannie and Freddie) have been doing weird shit to massage the market back to normal. For example, why is Blackrock paying cash? Because REIs were being hit with 4-7 points on each loan. Same with second homes. Make of that what you will. That hit has gone away in the last week or so, but 2020 was a record year for mortgages and everyone is wondering when the ride will end. Because it will. I wholeheartedly belive the lockdowns served as a pressure release valve on a massive bubble. We live in interesting times, indeed.