Article: Banks Raise $34 Billion to Comply with SEC Rule, Effective Today

Article - Media, Publications

Banks Raise $34 Billion to Comply with SEC Rule, Effective Today

Tim Fries, 22 April 2021

Having the collateral to cover stock trading is important to oil the market cogs. With margin trading, it is critical, a lesson learned the hard way from “Bill” Hwang last month. From today, the SEC will decide which brokerages failed to cover their securities trading, and what punishments it will dish out.

What is SEC Rule 15c3-3?
Even free market absolutists understand that rules of the playing field have to be followed to maintain the ecosystem. The U.S. Securities and Exchange Commission (SEC) is the final arbiter in this arena. Although this regulatory agency too suffers from the “revolving door” syndrome, on paper, the SEC is in charge of ensuring market participants play fairly. Continue reading “Article: Banks Raise $34 Billion to Comply with SEC Rule, Effective Today”

Article: Can the US Economy Withstand a $3 Trillion Cash Injection?

Article - Media, Publications

Can the US Economy Withstand a $3 Trillion Cash Injection?

Tim Fries, 12 April 2021

It is not often noted that the U.S. Treasury too injects the economy with cash flow, on top of various stimulus packages. With a precarious economic balance such as it is, excess liquidity may yet be another trigger to make inflation worse.

Controlled Demolition of the Economy
At this point, it’s safe to say this decade began with a string of anomalies colossal in scope. Novel, harsh lockdowns were introduced for a fast-spreading, largely unknown virus. This led to historic wealth transfer from workers to corporate conglomerates close to $4 trillion, not to be confused with the other historic wealth transfer from boomers to millennials. Continue reading “Article: Can the US Economy Withstand a $3 Trillion Cash Injection?”