That's for sure. Only those who own the Fed have the AAA battery.
Personally, I think options selling if done right is the battery,
since the Fed will always add liquidity when needed. Most
traders have no deep knowledge of the complicated math involved
in options pricing, and the power of supercomuters the banks
possess does lead to systematic wins, unless there is
a liquidity crisis like 1987. Then they get under a
steamroller, but the Fed won't let that happen.
Looks like
banks think the same way -g- Some day the derivative markets
might overpower the Fed and crash. 2/27 was a demo how -
limit down will happen in 1 minute or so, cause otherwise
the Fed will do a save. The problem is, all of the
Fed's so-called liquidity is on the credit card, and those bills
do come due. Maybe, the Fed will choose to print a lot when they
come due, I don't know. The real game is not up to them, it's up to
foreign central banks. It's the dollar, and foreign CBs are
our creditors. The credit card bills are about to come
due, IMHO, if the dollar breaks its last support at 80, but
what do I know! I am not one of the chosen ones who have the
AAA battery -g-
By the way, the Fed is NOT printing a lot per se, they print
a little, but that gets multiplied via credit card and
margin. Thus, not as much inflation, while at the same
time the goal of market rigging is achieved. |
