Is the end nigh?

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Crypto hedge fund Three Arrows Capital plunges into liquidation as market crash takes toll

A slump in cryptocurrency prices, which has seen billions of dollars wiped off the market, has exposed a liquidity crisis at Three Arrows Capital.
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Here we go. It was only a matter of time before all those loans taken out on the over inflated bitcoin value came due.

Now nobody has the money to make any payments on all those loans.

Tesla also laid off 200 people and shut down an office trying to cut costs because they're knee deep in bitcoin as well.

Right now, Tesla is about 400 million dollars in the hole on their bitcoin gamble.
 
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Repurchase Agreement (Repo) Definition

A repurchase agreement is a form of short-term borrowing for dealers in government securities.
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A repurchase agreement (repo) is a form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day at a slightly higher price. That small difference in price is the implicit overnight interest rate. Repos are typically used to raise short-term capital. They are also a common tool of central bank open market operations.


For the party selling the security and agreeing to repurchase it in the future, it is a repo; for the party on the other end of the transaction, buying the security and agreeing to sell in the future, it is a reverse repurchase agreement.


KEY TAKEAWAYS​

  • A repurchase agreement, or 'repo', is a short-term agreement to sell securities in order to buy them back at a slightly higher price.
  • The one selling the repo is effectively borrowing and the other party is lending, since the lender is credited the implicit interest in the difference in prices from initiation to repurchase.
  • Repos and reverse repos are thus used for short-term borrowing and lending, often with a tenor of overnight to 48 hours.
  • The implicit interest rate on these agreements is known as the repo rate, a proxy for the overnight risk-free rate.
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The RRP transaction is used less often than a repo by the Fed, as a repo puts money into the banking system when it is short, whereas an RRP borrows money from the system when there is too much liquidity. The Fed conducts RRPs in order to maintain long-term monetary policy and ensure capital liquidity levels in the market.
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Now that you have a bit of a grasp on repo's and reverse repo's.


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How Long Can a Trader Keep a Short Position?

Learn whether there are any limitations on how long may an investor hold a short position, and explore the costs associated with short selling.
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A short position may be maintained as long as the investor can honor the margin requirements and pay the required interest and the broker lending the shares allows them to be borrowed.
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If I understand it all, in this case, the suspicion is the overnight loan by the fed is being used to 'honor the margin requirements' when required as the investment firms have been playing hide and seek with unregistered securities.
 
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So now there's this:

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Amazon reportedly plans to lay off about 10,000 employees starting this week

Amazon plans to lay off approximately 10,000 employees in corporate and technology roles beginning this week, according to a report from The New York Times.
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Crypto crashing, Amazon laying off 10,000, Facebook laying off 11,000, Twitter laying off 5,000, companies all laying off THOUSANDS of people and right before the busiest shopping time of the year?

Yeah. It's all going to crash and it's going to crash hard.

A bunch of companies stocks will rise now because idiots think that laying off workers is good for the company's bottom line, but fact is a few months from now when reality sets in that all those thousands aren't spending money on all those products which drops sales which tanks stocks...

My God. We've learned nothing. Over and over again and the rich never learn a damn thing. Greed to the bitter end.
 
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