Inflection Point cover image

The Big Tech Bull Market, Not A Mania Yet | Round Up

Inflection Point

00:00

The Effect of Higher Rates on Liquidity

I think that the fact that you have to pay more for your deposits actually should make you want to make more loans. But banks have been pulling back on credit. And I think that's because, ah, I know what it is. The amount of money in the reverse repo facility has been draining. It's finally happened. Depositable money market funds are buying more treasuries. So there's no longer a lack of collateral so that treasury yields are actually slightly above risk-free interest rates rather than below.

Play episode from 28:57
Transcript

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app