“The New Liquidity” – Seeds of Wisdom RV/GCR Update(s) from Goldilocks 10-30-23

Goldilocks and Seeds of Wisdom “The commercial banks are under heavy pressure in terms of liquidity or money management. To deal with this pressure, on one hand, various banks are borrowing from the central bank at high-interest rates under special liquidity support. On the other hand, short-term loans are taken from call money market or from other banks.” Let’s take a close look at what this is telling us. Remember, on July the 1st, 2023, Banks all over the world and companies went to SOFR lending rates. In other words, banks are borrowing money from Central Banks that hold our…