Name: 金融システムは壊れている（ジェフ・スナイダー付き (The Financial System Is Broken (w/ Jeff Snider))
Uploaded: 2021-01-14T08:46:21.000Z
Duration: 30 min 43 s
Description: VoiceTubeの動画で発音を聞きながら英語表現を覚えよう！学べる英語：

It's a registered investment advisor based out of Florida.

What I do is, as the head of global research, is I focus in on the monetary mechanics, the

plumbing, so to speak, behind what actually goes on in the world.

I take a particular focus on something I call the Eurodollar system because as a global

currency, it really is the global reserve currency.

Because it's a global reserve currency, what that does is that touches pretty much every

part of the global economy in almost every part of the global markets.

The way in which that happens is it's a lot of times very complex.

A lot of times, it's hard to decipher, but what you should know is that the Eurodollar

It's out there, it's happening, it goes on, and very few people pay attention to it, and

a few still understand what really means and what it really does.

It was way back in early part of my career, I started looking at bank balance sheets,

for example, as an equity analyst, as a return a portfolio management firm.

You take a look at banks, and what you found out was that the way the banks operate and

the way that individual banks balance sheets were put together was not what you were taught

There was all the things going on, on these balance sheets and in this monetary system

that was very different from what everybody was saying, what everybody believed in and

What really drove me to look at it was the fact that nobody had any answers for these

These things would happen, you could see them on balance sheets, and you could see that

there was more behind them but when you stop to talk to people who were supposedly in the

know, people were supposed to know these things.

You listen to central bankers and economists, for example, it was very clear they didn't

For me, it just drove me further and further that hey, maybe someday this will be important.

Of course, first you had the dot-com bust and then of course, what happened in 2008.

You started really to think, okay, there's something really going on here that's worth

investigating and worth understanding in a particular level, because there's a lot that's

Well, what literally happened last week was the repo rate shot up.

Because it shot up, there's various linkages between the repo market and the Federal Funds

Monetary policy at the Federal Reserve operates on Federal Funds so as Federal Funds rose

in the range, and then actually broke out of the target policy range, that caught the

They can't any longer ignore something going on the repo market that's spilling over into

That's literally what happened, was that these report rates skyrocketed because of a lack

of liquidity, which forced the Fed to respond, which they did with these overnight repo operations

that have become daily, which are now sprinkled in with term repo operations simply because

there's a lack of liquidity in the system.

The Fed doesn't know, most people in the mainstream don't know, there's really not a whole lot

of answers about what's really going on there.

There's certainly been a lot of theories, but there hasn't been a lot of answers.

For what I said, what I've been saying for a long time is that this didn't just happen

We've been talking about Fed funds repo, for in this particular case, for over a year and

In fact, the Federal Reserve knew something was going on because they have been altering

their mechanics, just a little slightly here along the way.

Going back to June of last year, for example, June of 2018, they changed IOER for the first

They dropped it five basis points below where it was.

The idea was that that would help liquidity in the marketplace, that would get banks to

lend some of their free reserves into essentially repo and then have that trickle down into

They kept on adjusting IOER expecting that this little nothing of a problem would just

They kept finding out that, hey, there's something going on here.

Really, that's the big message behind all of this.

When you stop and look at what's going on in the repo market, Federal Funds and some

of the wider issues with the fixed income marketplace as a whole, what you keep coming

back to is there's something going on here.

First, you say there's something missing.

There's a big piece of liquidity missing, but there's something else going on here because

this keeps building and building, and what happened last week was it finally broke out

into the open so that everybody started paying attention to what was essentially something

that had been happening for quite some time beforehand.

IOER is the rate the Fed pays on excess reserves.

Going back to 2008, the Fed has created excess bank reserves and it pays a specific rate

The idea is that helps the Fed control money market rates like the Federal Funds rate.

The reason it is because where they place IOER in the range of their policy range or

in the range of actual transactions gives banks alternatives of where they can put free

cash or free funds, however you want to call bank reserves.

The idea is if I lower IOER, that means I'm going to pay banks-- as the Fed, I'm going

to pay the banks a little bit less to give them a little bit more incentive to go into

repo or Federal Funds that will bring those rates down and add a little bit more liquidity

to the system where it's supposedly needed.

Every time they reduced IOER, you didn't see much of a response in either repo or Federal

Federal funds kept rising inside the range.

In fact, earlier March of this year, Federal Funds broke above IOER for the first time

and they responded by just lowering IOER again expecting, again, the idea that will pay banks

a little bit less on their reserves so that they'll chase a higher return which was by

then a much higher return in Federal Funds and repo.

Again, we come back to that same question, why didn't the banks do that?

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金融システムは壊れている（ジェフ・スナイダー付き (The Financial System Is Broken (w/ Jeff Snider))

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