Only one thing of interest came out of the FOMC Minutes this afternoon. The information moved quickly in a small circle of the twitter-sphere but was missed by the usual suspects of talking heads and ranting white boards in financial media.
The Fed discussed the blue prints for building the financial system Death Star. The Jedi mind trick on the ignorant called Forward Guidance has already failed. The common name will be The Fixed Rate Full Allotment Over Night Reverse Repo Facility. Fuck that, I’m going with Death Star. This nasty beast would attempt to suck up money from massive pools after 3 years of tri-party reverse repo tinkering proved futile and too risky for JPM and Mellon.
This is, as the always worthy @exantefactor – Vince Foster put it, “the Fed’s move into shadow banking”. I’d like to believe they’d actually get to use it someday but this is fantasy right now.
Unlike George Lucas, Ben, and more importantly the Sith Lord to be named soon, cannot start at episode 4. But build it they must. After all there’s all that “money they printed” out there beyond the moons of Nobu. Spoiler alert – this system seizes up faster than the Millennium Falcon trying to make the jump to light speed. Keep the Wookies on speed dial.