Mysterious Buying - US Treasuries and Equities
28 Minutes, 43 Slides
With the aid of 43 slides, Gordon T Long and John Rubino debate three highly unusual and mysterious buying patterns which have emerged in the US Treasury and Equity markets.
1 - The Mysterious Belgium US Treasury Buyer
Who is the stealth buyer who is buying US Treasuries through Euroclear in Belgium?
- US FEDERAL RESERVE
- US TREASURY
- EU'S ECB
- CHINA'S PBOC
- BIS /IMF
What would be their individual motives for buying, why keep it so secretive and where would the funding come from?
2- The $29.1T in Public Central Banking Buying
Why would central banks and public institutions be buying such large quantities of equities?
The FT reports
"A cluster of central banking investors has become major players on world equity markets." The report, to be published by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which "could potentially contribute to overheated asset prices." China's State Administration of Foreign Exchange has become "the world's largest public sector holder of equities", according to officials.
3- The $1T in Private S&P 500 Buybacks in 2-Years
Why would corporations buyback nearly $1T of S&P 500 equities over the last two years? This is unprecedented!
The Consequences of Mispricing Risk and Failed Price Discovery
What are the ramifications of the withdrawal of this degree of treasuries and equities from the financial markets?
Join Gord and John for a very enlightening, "no holds barred" discussion on all the above questions.
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Thesis Paper: Financial Repression
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