🟢 [E5309] Uh and then I'll finish with uh AI Joseph Shumpeter and Bitcoin.

🟢 [E5312] Well, bond put equals stockp.

🟢 [E5329] Uh and this is coming out from the Fed supporting treasury market functioning by keeping the price of futures near fair value relative to treasury securities.

🟢 [E5313] As we go through this bond v equals adapt or die as an investor.

🟢 [E5328] And that's why in the treasury thing, this is was talked about in terms of quantifying treasury cash futures basis trades.

🟢 [E5327] Hedge funds would come in, sell futures above fair value and buy cash bonds and levered up 50 to1.

🟢 [E5318] went through that last week and in each of the prior instances the market was higher three to six months later so that was the beginning of the week so let's kind of go through a little bit of what happened this week first of all you have to remember there's no Trump put there's no Treasury secretar

🟢 [E5315] But the main point of what I was trying to get across, which I talked about briefly last week, it is always a mistake to listen to leaders at a time where they say they will not be doing something to help the market.

🟢 [E5314] go in detail to what a lot of the things say, but uh, I am sending stuff out during the week.

🟢 [E5311] Uh and then I'll finish with uh AI Joseph Shumpeter and Bitcoin.

🟢 [E5322] Uh, and that just meant that you had this weird scenario where mutual funds would push up the futures above fair value.

🟢 [E5323] Hedge funds would come in, sell futures above fair value and buy cash bonds and levered up 50 to1.

🟢 [E5324] Um, so they've been providing liquidity, but really what they've been providing less so than just liquidity at the auctions is kind of this ability for the bid offer spread to remain tight.

🟢 [E5325] Uh and this is coming out from the Fed supporting treasury market functioning by keeping the price of futures near fair value relative to treasury securities.

🟢 [E5332] The the the main point here is um it's estimated that

🟢 [E5316] Uh, and the point I made here is the market, every leader has always said in everything I've traded, the market's wrong with what it's doing.

🟢 [E5320] whether or not this was the basis the basis trade that started it or whether this was foreigners bailing out regardless the main point I want to start with which I said on the podcast with Anthony Pompiano yesterday you have to understand that when the highest part of the capital structure in the wo

🟢 [E5333] That's the 50 to1 leverage.

🟢 [E5310] Rev up the printing press.

🟢 [E5321] Um, so they've been providing liquidity, but really what they've been providing less so than just liquidity at the auctions is kind of this ability for the bid offer spread to remain tight.

🟢 [E5317] went through that last week and in each of the prior instances the market was higher three to six months later so that was the beginning of the week so let's kind of go through a little bit of what happened this week first of all you have to remember there's no Trump put there's no Treasury secretar

🟢 [E5319] It's very important to the market or it has been since a combination of uh 2009 once the banks were regulated and their balance sheets were uh were shrunk.

🟢 [E5330] Then you get the next thing BV uh the Bank of England warns of further sharp corrections in markets is high.

🟢 [E5331] I highly recommend going through the Bank of England financial stability report which came out their minutes for the 4th and the 8th of April.

🟢 [E5326] when we saw a massive expansion in government debt relative to private sector debt.