Just the cost of doing business... 

>Overall, since 2014, Luke states the U.S. has moved away from being financed by stable, politically motivated creditors like global central banks to relying more on private, profit-seeking entities in tax havens.

>This is worrying because this trend is part of what a country experiences in their transition to banana republic- not only do they shift the issuance of their bonds to the short end, but the makeup of investors who buy their bonds changes also. Hedge funds, family offices, and other professional investors come in to buy and trade bills and short term bonds, but most of these firms won’t hold them for the long term. The pension funds leave, and the traders fill their place.

>This is happening as the U.S. moves past the Monetary Event Horizon, something I discussed in a piece with the same name last July. This is a concept I created for the financial point of no return- where the financial gravity of the debt grows so large that not even the powerful U.S. Treasury can escape. Functionally, there can be multiple event horizons: the point at which annual debt growth exceeds GDP growth, or when debt to GDP exceeds 120% (something Hindenburg Research found has caused an inflationary crisis or depression in 54 out of 55 countries in the last 150 years, with the only exception being Japan), or when interest on the debt exceeds tax receipts.

>Each of these are progressively worse event horizons, with the last one being crucial since it means the debt will functionally NEVER be paid off.

<div class="md"><blockquote>
<p>Overall, since 2014, Luke states the U.S. has moved away from being financed by stable, politically motivated creditors like global central banks to relying more on private, profit-seeking entities in tax havens.</p>

<p>This is worrying because this trend is part of what a country experiences in their transition to banana republic- not only do they shift the issuance of their bonds to the short end, but the makeup of investors who buy their bonds changes also. Hedge funds, family offices, and other professional investors come in to buy and trade bills and short term bonds, but most of these firms won’t hold them for the long term. The pension funds leave, and the traders fill their place.</p>

<p>This is happening as the U.S. moves past the Monetary Event Horizon, something I discussed in a piece with the same name last July. This is a concept I created for the financial point of no return- where the financial gravity of the debt grows so large that not even the powerful U.S. Treasury can escape. Functionally, there can be multiple event horizons: the point at which annual debt growth exceeds GDP growth, or when debt to GDP exceeds 120% (something Hindenburg Research found has caused an inflationary crisis or depression in 54 out of 55 countries in the last 150 years, with the only exception being Japan), or when interest on the debt exceeds tax receipts.</p>

<p>Each of these are progressively worse event horizons, with the last one being crucial since it means the debt will functionally NEVER be paid off.</p>
</blockquote>
</div>

Past the Event Horizon

>Through 15 rounds of disposals, US rules have required Buffett to disclose trades within a few days. But a regulatory filing Thursday shows the stake is now small enough that Buffett may provide updates quarterly — potentially leaving fellow shareholders in the dark for months if he sells further. 

>That may quiet a drama that keeps weighing on the minds of investors.

Does the Oracle of Omaha see something that others saw over three years ago..?

https://www.reddit.com/r/Superstonk/comments/nsioql/the_complete_bank_of_america_gamestop_dd/?utm_medium=android_app&utm_source=share

<div class="md"><blockquote>
<p>Through 15 rounds of disposals, US rules have required Buffett to disclose trades within a few days. But a regulatory filing Thursday shows the stake is now small enough that Buffett may provide updates quarterly — potentially leaving fellow shareholders in the dark for months if he sells further. </p>

<p>That may quiet a drama that keeps weighing on the minds of investors.</p>
</blockquote>

<p>Does the Oracle of Omaha see something that others saw over three years ago..?</p>

<p><a href="https://www.reddit.com/r/Superstonk/comments/nsioql/the_complete_bank_of_america_gamestop_dd/?utm_medium=android_app&amp;utm_source=share">https://www.reddit.com/r/Superstonk/comments/nsioql/the_complete_bank_of_america_gamestop_dd/?utm_medium=android_app&amp;utm_source=share</a></p>
</div>

Warren Buffett cuts stake in Bank of America below 10%, trade updates may slow to quarterly basis

>When the surge in index futures exceeded gains in the underlying stocks on Friday, it imposed paper losses on some quants’ hedging positions, according to Liangkui Asset. When brokerages closed the short positions, they pushed the index futures further up along with investors betting on a further rally, worsening the short squeeze, it said.

China is injecting cash to help their markets, which could be problematic for firms who are shorting the Chinese markets. 

<div class="md"><blockquote>
<p>When the surge in index futures exceeded gains in the underlying stocks on Friday, it imposed paper losses on some quants’ hedging positions, according to Liangkui Asset. When brokerages closed the short positions, they pushed the index futures further up along with investors betting on a further rally, worsening the short squeeze, it said.</p>
</blockquote>

<p>China is injecting cash to help their markets, which could be problematic for firms who are shorting the Chinese markets. </p>
</div>

Quant Hedge Funds Face More Margin Calls as Chinese Stocks Surge

>These cuts are a form of stealth easing. As I’ve covered in depth in Stealth QE, central banks have been busy finding new ways of being accommodative without doing so on the surface. With inflation globally hitting multi-decade highs in 2022, the monetary elites needed to find a way to appear to reduce balance sheet size without actually damaging the financial system. The Fed created BTFP and began drawing down Reverse Repo; the Bank of Canada began injecting repo liquidity, and the Bank of Japan tried to continue easing while at the same time running interventions in their foreign exchange market.

<div class="md"><blockquote>
<p>These cuts are a form of stealth easing. As I’ve covered in depth in Stealth QE, central banks have been busy finding new ways of being accommodative without doing so on the surface. With inflation globally hitting multi-decade highs in 2022, the monetary elites needed to find a way to appear to reduce balance sheet size without actually damaging the financial system. The Fed created BTFP and began drawing down Reverse Repo; the Bank of Canada began injecting repo liquidity, and the Bank of Japan tried to continue easing while at the same time running interventions in their foreign exchange market.</p>
</blockquote>
</div>

China Unleashes a Liquidity Wave

A Wall Street Regulator Is Understating Margin Debt by More than $4 Trillion – Because It’s Not Counting Giant Banks Making Margin Loans to Hedge Funds (Article text in comment)

>The DOJ is probing if there was collusion or a conspiracy to collude to control prices in those chats. At least three banks — Credit Suisse, Nomura Holdings Inc. and UBS Group AG – reached a managed liquidation agreement to sell down parts of their Archegos exposure. Others like Goldman Sachs Group Inc., Morgan Stanley and Deutsche Bank AG explored such an agreement before deciding against it.

<div class="md"><blockquote>
<p>The DOJ is probing if there was collusion or a conspiracy to collude to control prices in those chats. At least three banks — Credit Suisse, Nomura Holdings Inc. and UBS Group AG – reached a managed liquidation agreement to sell down parts of their Archegos exposure. Others like Goldman Sachs Group Inc., Morgan Stanley and Deutsche Bank AG explored such an agreement before deciding against it.</p>
</blockquote>
</div>

Archegos Banks That Unwound Bets Face Criminal Antitrust Probe

>The late August arrest of of Jiang Chengjun, who was a deputy general manager at Haitong overseeing investment banking, helped accelerate the deal’s timing, according to a person familiar with the matter. On Aug. 28, Haitong reported a 75% drop in first-half profit to 953 million yuan, in part because of declines in investment banking, trading and institutional client services revenue.

<div class="md"><blockquote>
<p>The late August arrest of of Jiang Chengjun, who was a deputy general manager at Haitong overseeing investment banking, helped accelerate the deal’s timing, according to a person familiar with the matter. On Aug. 28, Haitong reported a 75% drop in first-half profit to 953 million yuan, in part because of declines in investment banking, trading and institutional client services revenue.</p>
</blockquote>
</div>

China detains 8,700 investment bankers, takes passports in corruption sweep

As of March 31, 2024, three of the largest U.S. banks had a combined total of $1.832 trillion in loans outstanding to giant Hedge Funds. These Hedge funds have conducted a successful coup of control and authority over Mega Meme Banks🔥 

Africa’s Debt Crisis Has ‘Catastrophic Implications’ for the World (Gift Article)

The Greater Depression Theory PT.4

The Greater Depression PT.3

>They point to the fact that CEO Huang has been offloading approximately $14 million's worth of shares on a near-daily basis for months this summer. He still retains more than a 3.5% stake in the business.

Plus they might be doing tech bubble tricks like round tripping. 

https://twitter.com/JG_Nuke/status/1755010726773600752

<div class="md"><blockquote>
<p>They point to the fact that CEO Huang has been offloading approximately $14 million&#39;s worth of shares on a near-daily basis for months this summer. He still retains more than a 3.5% stake in the business.</p>
</blockquote>

<p>Plus they might be doing tech bubble tricks like round tripping. </p>

<p><a href="https://twitter.com/JG_Nuke/status/1755010726773600752">https://twitter.com/JG_Nuke/status/1755010726773600752</a></p>
</div>

Nvidia’s Jensen Huang sells $14 million in stock almost daily—raising questions about his successor

All the Devils from 2008 Are Back at the Megabanks: Leverage, Off-Balance-Sheet Debt, Over $192 Trillion in Derivatives, Shaky Capital Levels 🔥 

>Now DailyMail.com can reveal an estimated 360,000 property owners in south Florida alone - the home of the condo boom - may not be able to afford the repairs required by the new law.

>Joseph Hernandez, a property lawyer and partner at Bilzin Sumberg in the state, said many of these are already looking to sell their units at a loss before they are hit with huge repair bills.

>The problem they face, however, is whether anyone will want to buy them even at massive discounts given the strings attached.

<div class="md"><blockquote>
<p>Now DailyMail.com can reveal an estimated 360,000 property owners in south Florida alone - the home of the condo boom - may not be able to afford the repairs required by the new law.</p>

<p>Joseph Hernandez, a property lawyer and partner at Bilzin Sumberg in the state, said many of these are already looking to sell their units at a loss before they are hit with huge repair bills.</p>

<p>The problem they face, however, is whether anyone will want to buy them even at massive discounts given the strings attached.</p>
</blockquote>
</div>

Florida hit by 'worst real estate crisis in decades'

Exposure at Hedge Funds has skyrocketed by 24.5% in the span of just one year to $28,579,000,000,000 🔥

Japan’s Nikkei Posts Biggest 2 Day Drop In History, Enters Bear Market As Global Equities Continue To Plunge

>However, the cost to be paid will be steep. Recall that after the last two decades of zero interest rates and yield curve control, Japanese public debt to GDP stands at a whopping 263% and the private debt to GDP north of 120%. If the BoJ actually wants to normalize rates with the Fed, their federal government would be paying 13% of their annual GDP alone in interest expense.

>13 PERCENT.

>The market reactions have already been severe. 

>On Friday morning, the benchmark Nikkei Stock Average was down 4.0% at 36,588.75 after dropping as much as 5.3% earlier. In the past five years, the index has seen a daily drop of more than 4.0% only at the start of the Covid-19 pandemic. The Nikkei 225 closed a massive 5.8% lower, marking its biggest daily drop since March 2020.

<div class="md"><blockquote>
<p>However, the cost to be paid will be steep. Recall that after the last two decades of zero interest rates and yield curve control, Japanese public debt to GDP stands at a whopping 263% and the private debt to GDP north of 120%. If the BoJ actually wants to normalize rates with the Fed, their federal government would be paying 13% of their annual GDP alone in interest expense.</p>

<p>13 PERCENT.</p>

<p>The market reactions have already been severe. </p>

<p>On Friday morning, the benchmark Nikkei Stock Average was down 4.0% at 36,588.75 after dropping as much as 5.3% earlier. In the past five years, the index has seen a daily drop of more than 4.0% only at the start of the Covid-19 pandemic. The Nikkei 225 closed a massive 5.8% lower, marking its biggest daily drop since March 2020.</p>
</blockquote>
</div>

Godzilla Returns

>Selling off a big chunk of its Apple holdings was the quarter's biggest news — Buffett once called the company's stake in the iPhone maker a pillar of Berkshire’s business that he intended to hold indefinitely. The other major investment moves Buffett made during the quarter included continued cuts to its investment in Chinese EV maker BYD and selling off some of its Bank of America stock.

Is Buffet transitioning to cash to be ready to buy stocks after they crash? Why now?

>Warren Buffett once said that it's wise for investors “to be fearful when others are greedy and to be greedy only when others are fearful.”

https://www.investopedia.com/articles/investing/012116/warren-buffett-be-fearful-when-others-are-greedy.asp

<div class="md"><blockquote>
<p>Selling off a big chunk of its Apple holdings was the quarter&#39;s biggest news — Buffett once called the company&#39;s stake in the iPhone maker a pillar of Berkshire’s business that he intended to hold indefinitely. The other major investment moves Buffett made during the quarter included continued cuts to its investment in Chinese EV maker BYD and selling off some of its Bank of America stock.</p>
</blockquote>

<p>Is Buffet transitioning to cash to be ready to buy stocks after they crash? Why now?</p>

<blockquote>
<p>Warren Buffett once said that it&#39;s wise for investors “to be fearful when others are greedy and to be greedy only when others are fearful.”</p>
</blockquote>

<p><a href="https://www.investopedia.com/articles/investing/012116/warren-buffett-be-fearful-when-others-are-greedy.asp">https://www.investopedia.com/articles/investing/012116/warren-buffett-be-fearful-when-others-are-greedy.asp</a></p>
</div>

Warren Buffett surprises by slashing Berkshire Hathaway's longtime Apple stake in second quarter

AI’s future in grave danger from Nvidia’s chokehold on chips, groups warn

Markets sink on weaker-than-expected jobs report as fears rise of a slowing economy | CNN Business

>In 2006, the hulking office building at 135 W. 50th St. in midtown Manhattan sold for $332 million. Tenants occupied nearly every floor; offices were in demand; real estate was booming.

>On Wednesday, it changed hands again, in an unusual online auction — for $8.5 million.

>The staggeringly low sale price of the 23-story glass behemoth that was once the headquarters of Sports Illustrated is the latest and perhaps most surprising sign of how the pandemic has upended the state of office buildings in New York City, home to the largest central business district in the United States.

97.5% discount. In Manhattan. Not Cleveland. 

<div class="md"><blockquote>
<p>In 2006, the hulking office building at 135 W. 50th St. in midtown Manhattan sold for $332 million. Tenants occupied nearly every floor; offices were in demand; real estate was booming.</p>

<p>On Wednesday, it changed hands again, in an unusual online auction — for $8.5 million.</p>

<p>The staggeringly low sale price of the 23-story glass behemoth that was once the headquarters of Sports Illustrated is the latest and perhaps most surprising sign of how the pandemic has upended the state of office buildings in New York City, home to the largest central business district in the United States.</p>
</blockquote>

<p>97.5% discount. In Manhattan. Not Cleveland. </p>
</div>

This 23-Floor Manhattan Office Building Just Sold at a 97.5% Discount

>The number of smaller banks that had buckled as of June 24 is four times the number that shuttered in the whole of 2023. The trend is only expected to accelerate as restructuring picks up pace, financial news agency Yicai Global cited industry insiders as saying.

<div class="md"><blockquote>
<p>The number of smaller banks that had buckled as of June 24 is four times the number that shuttered in the whole of 2023. The trend is only expected to accelerate as restructuring picks up pace, financial news agency Yicai Global cited industry insiders as saying.</p>
</blockquote>
</div>

China Reels From Banking Crisis

The end is near. Do not be fooled. This is the perfect excuse for them all to sell their positions at ALL TIME HIGHS without consequences while taxpayers pick up the pieces. This is one step closer to MOASS. Buckle Up🚀🚀🚀

The Apocalypse Already Arrived: R.I.P. America (1776-2008)

SNB's Jordan blames Credit Suisse bosses for bank's crash By Reuters July 5, 202411:13 AM EDTUpdated 19 hours ago

What do y'all think of /r/collapse?

>A new report from Food Banks Canada(opens in a new tab) says 25 per cent of Canadians are experiencing a poverty standard of living, compared to the official Statistics Canada poverty rate of 10 per cent.

>The report(opens in a new tab) cites the ‘Material Deprivation Index’ (MDI) using Canadian data, and finds that a quarter of the country cannot afford two or more household essentials.

<div class="md"><blockquote>
<p>A new report from Food Banks Canada(opens in a new tab) says 25 per cent of Canadians are experiencing a poverty standard of living, compared to the official Statistics Canada poverty rate of 10 per cent.</p>

<p>The report(opens in a new tab) cites the ‘Material Deprivation Index’ (MDI) using Canadian data, and finds that a quarter of the country cannot afford two or more household essentials.</p>
</blockquote>
</div>

More Canadians are living in poverty than previously thought, says report

>But supply has since bottomed out, and inventory is showing slow signs of recovery. Despite this, buyers aren't coming back as expected, with both new- and used-vehicle loan originations tumbling through 2023. That suggests sales have plateaued.

Quite a few dealerships seem to be overstocked. I'm seeming some pictures of large fleets of new unshipped vehicles parked in temporary locations. 

<div class="md"><blockquote>
<p>But supply has since bottomed out, and inventory is showing slow signs of recovery. Despite this, buyers aren&#39;t coming back as expected, with both new- and used-vehicle loan originations tumbling through 2023. That suggests sales have plateaued.</p>
</blockquote>

<p>Quite a few dealerships seem to be overstocked. I&#39;m seeming some pictures of large fleets of new unshipped vehicles parked in temporary locations. </p>
</div>

Car prices are finally falling. Here's why people still aren't buying.

Bank Term Funding Program Alert! As of May 31, 2024 the total outstanding amount of all advances under the BTFP was $107,946,342,000. The amount of interest paid to live another day? $6,951,197,000 (so far...)

Dedicated to the Great Recession II (2020 - TBD)

<div class="md"><p>Dedicated to the Great Recession II (2020 - TBD)</p>
</div>

<div class="md"><p>Dedicated to the Great Depression II (2020 - TBD).</p>

<p>Related subreddits:
<a href="/r/collapse">r/collapse</a></p>
</div>

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