Financial Markets Around World
- Thread starter 4Runner
- Start date
Are those options cheap enough?
No idea, wish I had extra moolah laying around, I’d pick up a few. Unitree should also be listing late This year or so
The TGA (Treasury General Account), a kind of current account for the US Treasury, is at its highest level since May 2021, when it was still reducing excess liquidity due to the pandemic.
First (starting in July), Bessent's team worked to replenish reserves that were indeed low, and more recently (since September) they have been growing due to the closure of the US federal government, which implies money coming in through taxes and almost none going out.
This movement implies less money circulating in the US, a significant liquidity drain.
This has been particularly affecting Bitcoin, which is the asset most sensitive to liquidity. Until now, it hadn't affected the big tech companies that are in earnings season (which has been strong), but this story may be changing. There is a shift in market dynamics from yesterday to today.
This worsening market movement would force a resolution to the impasse in the US legislature regarding the "shutdown".
Once it's over, there will be a flood of liquidity as the American government will need to pay back wages and expenses from the period.
Add to that the rounds of liquidity being provided by the Fed to avoid disruptions in credit markets in the short term and the end of Quantitative Tightening in November, freeing up the Fed's balance sheet to grow again (even if only the interest on debts).
Therefore, pay close attention to when the "shutdown" ends. It could be a signal to the market that a strong rally is beginning.