Jim’s Rant For The Day. Beware – Lehman Bros. Deja Vu.
Based on yesterday’s Bix Weir podcast, the Chinese bank Evergrande may be days away from collapse and bringing down the global banking system. As if that’s not enough he points out that the current overnight global bank Repo system that is lending a Trillion Dollars each day to prop up the banks has lit their own fuse through the Federal Reserve.
As of September 1st, all those massive derivative funds no longer have access to the Repo funds to keep them afloat.
Heads up folks, there may be two short fuses burning on the banking system as we speak.