I hope Emil has not run off to fight for Ukraine. You know those hot blooded Polacks (and that is the correct word, by the way, for a male Pole - no double entendre intended).
Jeff’s great but Emil also adds a factor that can’t be over looked; “how do new people learn about this?” Emil’s questions to Jeff are always “on the money”
Where is Emil? I really though he is a great asset to the show. It's a real shame to read the faceless negative comments about Emil. Please come back Emil you are missed and we value your hard work, and we do love you.
Jeff Snider is such a nitwit! SOFR is the repo rate for Eurodollars, so yes the borrower wants the lowest funding rate possible. Since they make the spread between the funding rate and lending at the 10 yr rate this "net interest margin" is profit. If they leverage it then it basically free money it's called the leverage maturity transformation trade.
Okay I will admit it... I'm a novice. So here's my question... If we are dealing with a dollar shortage, and markets outside of the United States maintain their liquidity through the euro dollar system, then where have the euro dollars gone or are they being destroyed or who has them? If it's an unregulated market that has no specific oversight or governance to it then it would seem to me that the dollars should still be floating around out there. It seems to me that this euro dollar system does not have mechanisms in place to do anything but add more euro dollars to the system. There is no overriding governance that would remove Euro dollars from the system to say control inflation as it happens in the US or Japan or the EU. So if this euro dollar system creates liquidity for the world then where are the euro dollars going? Thank you again for a great presentation and I hope everything is okay with Emil.
They are being deposited at the fed where they get payed RISK FREE the key interest RATE ! That is how the KEY RATE WORKS ! It sets a RISK FREE minimum rate ! By being LOANED to the FED they are NOT loaned IN THE ECONOMY and therefore THERE ARE LESS DOLLARS FLOATING !
@plagship so if I understand what you're saying then the following would happen... If there was a global depression, for an ongoing time frame, and infrastructure/investment/production/consumption spending went down then there would be a following overabundance of euro dollars that would flood back into The euro Dollar market as a result of the lack of liquidity/spending needs? Just a thought experiment here. I too am just some guy wondering aloud on the internet. This is one of those items that I will likely sit on and watch over time to see how it works.
@@velvetcasuat as I said initially I'm a novice at this but it certainly has given me something to chew on. Nevertheless, are you suggesting that the Fed is "tightening" The total dollar supply by taking in euro dollars? I'm not sure why in my mind I differentiate between a dollar created through the US system and a "dollar" created in euro dollar system but maybe I'm missing something. I would no more anticipate the Fed trying to reduce the US dollar availability by removing Canadian or Australian dollars then I would expect them to try and manage the euro dollar system too. What am I missing?
@@davids949 there’s an article called “The Eleventh Marble,” iirc, that addresses this. It’s absolutely correct that there’s a growth obligation, and the truth is that the system is set up in such a way that debt always eventually overcomes growth because the growth is premised on debt. It’s a complex scam and I can’t wait for humanity to wake up to it.
I can't believe after a lil over half a year I'm actually starting to understand the main points and the reasoning behind it. Of course, Jeff is an incredible educator though. Just wish he was wearing something that said something that would have expressed his opinions, like "all [gov't] roads lead to hell."
Of course SOFIR doesn't work, 2 Years ago I watched a video from the group that built SOFIR and a young woman talking about it admitted that it had some challenges rather boldly. Figured if they had such concern over the fact it was unproven during stress it was likely a DUD.
@Stu Mac,it’s far bigger than a screw up. Jeff is telling us that the system that government claims it’s controlling has a mind of its own. There is no regulatory institution capable of overseeing the Eurodollar. This is more like the story Frankenstein than anything else. Capitalism is not controllable.
LIBOR sounds like the equivalent of the rate at which you can purchase physical precious metals, compared to the spot rate. The divergence of the two tells you more about the market than the nominal price itself
i can only just imagine bankers screaming furiously at powerll and other bureaucrats in a room trying to explain to them how idiotic they are and how much damage they are causing. thats what i would do if i was a high level exec at any of those big banks. i would call the other banks, set up a meeting with those clowns. if they didn't respond i would leave them extremely nasty threats and messages
In reading annual report of a global grain processer I have stock in, they list their debt possibly a line of credit, uses the Tokyo Overnight RAte as the interest rate of this debt. This rate in research is set by the Japan Central Bank. Did you know bout this interest rate and hope you can research and see if major international corp are using this line of credit for debt and speak about this in a video. Thanks for your work on this.
And wouldn't the reduction of credit and liquidity risk in reference rates ultimately be a desirable thing, since credit and liquidity risk can become a self-referencing and self reinforcing feedback?
The sofr was that big bit of furniture we had in the living room that we sat on to watch TV back when I was a kid. What is so bad about a sofr? And what are those faded documents hanging on the wall behind you?
The New York Fed publishes SOFR at 8 a.m. EST each day. In contrast to the different term LIBORs (i.e., one-month LIBOR, three-month LIBOR, etc.), it is an overnight, fully secured rate. Chatham's U.S. market data includes daily SOFR and SOFR/Term SOFR swap rates.
Thanks for explaining these elements of the plumbing so well. I can imagine how elementary it is to you, but you do an excellent job explaining without going too deep into the weeds or losing me in jargon.
![The Myth of Paul Volcker and the Powerful Fed [Eurodollar University, Ep. 221]](http://i.ytimg.com/vi/9XqHyZOLiEc/mqdefault.jpg)
![The Myth of Paul Volcker and the Powerful Fed [Eurodollar University, Ep. 221]](/img/tr.png)
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Emil is the Eurodollar. He doesn't provide the chief substance of the show, but because he is the facilitator of the show, we feel his absence.
The straight man. Not mention sexual.
Please no.
I hope Emil has not run off to fight for Ukraine. You know those hot blooded Polacks (and that is the correct word, by the way, for a male Pole - no double entendre intended).
Jeff is great. But chemistry dynamic between both Emil and Jeff together is better
Enough of the silent quiting Emil, Jeff desperately needs you back.😁
I think he is doing a great job. I like Emile also but Jeff hold his own just fine 😂😂😂
@@betsywestbrook7169 Jeff is a beast ~!! With or Without, Jeff's a beast ~!!
Jeff’s great but Emil also adds a factor that can’t be over looked; “how do new people learn about this?” Emil’s questions to Jeff are always “on the money”
Where is Emil? I really though he is a great asset to the show. It's a real shame to read the faceless negative comments about Emil. Please come back Emil you are missed and we value your hard work, and we do love you.
Jeff is the reason I come to this web site. Keep up the very interesting, educational and valuable content. I tell other people about his talks.
New subs are gonna think, who's this Emil guy?
Thanks Jeff
Emil’s only fans adventure must be going really well 😂
Thanks Jeff! You are doing just fine without Emil. He is missed but your content is still fantastic.
Jeff Snider is such a nitwit! SOFR is the repo rate for Eurodollars, so yes the borrower wants the lowest funding rate possible. Since they make the spread between the funding rate and lending at the 10 yr rate this "net interest margin" is profit. If they leverage it then it basically free money it's called the leverage maturity transformation trade.
This and the Chinese real estate -- two pretty important topics that somehow went under the radar in mass media.
Okay I will admit it... I'm a novice. So here's my question... If we are dealing with a dollar shortage, and markets outside of the United States maintain their liquidity through the euro dollar system, then where have the euro dollars gone or are they being destroyed or who has them? If it's an unregulated market that has no specific oversight or governance to it then it would seem to me that the dollars should still be floating around out there. It seems to me that this euro dollar system does not have mechanisms in place to do anything but add more euro dollars to the system. There is no overriding governance that would remove Euro dollars from the system to say control inflation as it happens in the US or Japan or the EU. So if this euro dollar system creates liquidity for the world then where are the euro dollars going?
Thank you again for a great presentation and I hope everything is okay with Emil.
They are being deposited at the fed where they get payed RISK FREE the key interest RATE ! That is how the KEY RATE WORKS ! It sets a RISK FREE minimum rate ! By being LOANED to the FED they are NOT loaned IN THE ECONOMY and therefore THERE ARE LESS DOLLARS FLOATING !
@plagship so if I understand what you're saying then the following would happen... If there was a global depression, for an ongoing time frame, and infrastructure/investment/production/consumption spending went down then there would be a following overabundance of euro dollars that would flood back into The euro Dollar market as a result of the lack of liquidity/spending needs?
Just a thought experiment here. I too am just some guy wondering aloud on the internet. This is one of those items that I will likely sit on and watch over time to see how it works.
@@velvetcasuat as I said initially I'm a novice at this but it certainly has given me something to chew on. Nevertheless, are you suggesting that the Fed is "tightening" The total dollar supply by taking in euro dollars? I'm not sure why in my mind I differentiate between a dollar created through the US system and a "dollar" created in euro dollar system but maybe I'm missing something. I would no more anticipate the Fed trying to reduce the US dollar availability by removing Canadian or Australian dollars then I would expect them to try and manage the euro dollar system too. What am I missing?
@plagship you’re exactly right. It’s a feature, not a bug. It’s how they deprive the world of their productivity. They’ve been doing it for centuries.
@@davids949 there’s an article called “The Eleventh Marble,” iirc, that addresses this. It’s absolutely correct that there’s a growth obligation, and the truth is that the system is set up in such a way that debt always eventually overcomes growth because the growth is premised on debt. It’s a complex scam and I can’t wait for humanity to wake up to it.
Jeff does not talk enough about pork bellies. Remember when the financial news used to talk about pork bellies all the time?
Ah yes, Trading Places, pork bellies and frozen OJ
Seems like SOFR dipping into the RRP rate should be a circuit breaker, full stop red flag 🚩 here be dragons.
The regulators do not have a clue what they are doing. # Clowns in realtime.
Emil not there is actually better 😬, Jeff explanations are much clearer and to the point without Emil interruptions 😅
I agree, but Emil was instrumental on getting us to this point. He is missed.
I can't believe after a lil over half a year I'm actually starting to understand the main points and the reasoning behind it. Of course, Jeff is an incredible educator though. Just wish he was wearing something that said something that would have expressed his opinions, like "all [gov't] roads lead to hell."
Of course SOFIR doesn't work, 2 Years ago I watched a video from the group that built SOFIR and a young woman talking about it admitted that it had some challenges rather boldly. Figured if they had such concern over the fact it was unproven during stress it was likely a DUD.
You can always rely on government regulators to screw things up.
I literally think they have a 99.9% error rate.
@Stu Mac,it’s far bigger than a screw up. Jeff is telling us that the system that government claims it’s controlling has a mind of its own. There is no regulatory institution capable of overseeing the Eurodollar.
This is more like the story Frankenstein than anything else. Capitalism is not controllable.
Great review Jeff. Thank you.
Emil got margin called to the great financial crisis in the sky.
LIBOR sounds like the equivalent of the rate at which you can purchase physical precious metals, compared to the spot rate. The divergence of the two tells you more about the market than the nominal price itself
i can only just imagine bankers screaming furiously at powerll and other bureaucrats in a room trying to explain to them how idiotic they are and how much damage they are causing. thats what i would do if i was a high level exec at any of those big banks. i would call the other banks, set up a meeting with those clowns. if they didn't respond i would leave them extremely nasty threats and messages
SOFR so good.
In reading annual report of a global grain processer I have stock in, they list their debt possibly a line of credit, uses the Tokyo Overnight RAte as the interest rate of this debt. This rate in
research is set by the Japan Central Bank. Did you know bout this interest rate and hope you can research and see if major international corp are using this line of credit for debt and speak
about this in a video. Thanks for your work on this.
@Jan USAFlorida, great question!
if fed pivots the fed chairman is the biggest joker of the 21st century
Jeff I have finance products which switched from Libor to Sonia. How do Sonia do Sofr compare?
The article links come up as an error!
Just Jeff? Is Emil having a silent depression?
And wouldn't the reduction of credit and liquidity risk in reference rates ultimately be a desirable thing, since credit and liquidity risk can become a self-referencing and self reinforcing feedback?
The sofr was that big bit of furniture we had in the living room that we sat on to watch TV back when I was a kid. What is so bad about a sofr? And what are those faded documents hanging on the wall behind you?
Where can I chart and monitor current and historic libor rates?
Jeff, do you think Your click bait is getting just a bit over dramatic?
Looks like Emil is with Real Vision (Raul Pal's finance company) now
Emil? Was he killed?.. By whom?
Did a lot of crooks go to jail over Libor?
Yep. Rigging the rates.
Do economists (or a lawyer in the case of Powell) know enough about banking to be the ones who are regulating the banking industry?
I want Emil back! I'm unsubscribing until I hear from him on Twitter that he's back.
Is Emil going to have a new program? He was great, quite entertaining and funny. Snider is good to but dry.
Maybe he needs some moisturizer.🤔
Maybe he got a new job that required him to step down.
EMIL !!!
Keep the beard. Looks good
Emil is in the shadows
I could feel myself getting smarter as I listen to Jeff.
Excellent view into the world of banks
The New York Fed publishes SOFR at 8 a.m. EST each day. In contrast to the different term LIBORs (i.e., one-month LIBOR, three-month LIBOR, etc.), it is an overnight, fully secured rate. Chatham's U.S. market data includes daily SOFR and SOFR/Term SOFR swap rates.
Emil is busy pulling he's money out of the banking system 😂
Jeff you are a beautiful man.
Thanks for explaining these elements of the plumbing so well. I can imagine how elementary it is to you, but you do an excellent job explaining without going too deep into the weeds or losing me in jargon.
I’d get out of the dealership if the salesman told me I can’t see the car, can’t know what car it is.
Instead, car dealers show you the car, but won't show you what it really costs.
NATO stocks depleting..China readies up..TAIWAN now in play..🙏🌏
Taiwan would be a naval battle, not a land war. No nato naval or aerial weapons have been deployed in Ukraine.
That thumbnail is great
Thank you Jeff!
Deflation deflation cometh…
Thank you Jeff ! Great stuff !
So, is Emil still riding the hurricane?
The high winds carried him off, á la Dorothy in The Wizard of Oz, over to Cuba. Hence his prolonged radio silence.
SOFR strictly an overnight reverse repo rate….September 2019
I don't understand what you're talking about at all, but I like your videos.
...it's like listening to that guy who talks about quantum physics.
Great work, Jeff.
What is in those frames your wall Jeff? Plz, Show & Tell.😊
They are Jeff's certificates of membership in the Illuminati. Don't you recognize them ? Ohhh...
anyone care for another slice of roast 401k ?.....
You are brilliant! Beard looks good now fix your tooth!
Lol, Jeff is going off while Emil is locked down..
whats going on with that milton friedman book? dog eat half the pages?