Why did you use 4 as the cash flows

Dear could you Share the excel of this example? Thanks for advance

my d1 and d2 are 0.4225 and 0.2782 , I can,t find the right number

I searched for ages to find an explanation on this with useful step by steps and finally got the right answers. Thanks so much

i like how you explained this, thank you for the good explanation

aka ovozi vawwe pastku bu

Consider a 6 month OIS Notional Price = INR 200 Fixed Rate = 7.5% Floating Rate = NSE Overnight MIBOR Under the structure of the swap, the Fixed Rate is nominal rate, MIBOR is compounded daily (on holidays the previous MIBOR is taken) Consider 182 days in the period of SWAP, 365 days in a year MIBOR remains constant for the entire period at 6.90% What is the amt to be exchanged at the end? Answer is INR 0.479 (Can you show the calculation for it)

Hi, thank you for this presentation. I am student in finance. Can anyone help me with basis ? I would like to know what is the main difference between CIM Basis Swap spread and Cross Currency basis Swap Spread ? Thank you in advance.

very helpful thank you

can I get the sheet, it's pretty useful for me!

Thank you

thanks

Can i get this sheet at [email protected].

Good explanation

Physical gold is better than holding bonds.

I'm having hard time with abstracting please help me😭😭

Clear, short and effective explanation. Many Thanks

Is it possible to download this spreadsheet?

Hello, instead of eurodaollar future rates what other things can i use? Can i use zero rates

Thanks alot that help me❤️🌹😍 I have an exam tomowrro

THANKS OBAMA

This logic still stands. With impending mayhem in China and Europe, the dollar will rise again.

Well it jumped today

Excelent video!! Regards from Chile

Oh, just saw big ben... Didn't see this dude the last time I was there, or I would have given him something...

Is this in London??

He as Wright dollar is steadly going up now

This guy is a complete moron. Do not listen to him. Dollar WILL COMPLETELY COLLAPSE. not by accident, but by the deliberate policies of the fed and government. They are not going to save the collapse of dollar, they are purposely causing it. Go do ur own research. All fiat currencies have failed 100% of the time. USD is no exception. Prosperity has ended. Prepare yourselves as best as possible right now

Thanks for your reply. Part of what I meant was that reserves are part of base money only while are not bank deposits part of M2. Is there then a difference between Fed purchases from Banks directly (increasing reserves) and purchases from firms (increasing deposits, thus part of M2?). Sorry if I'm being dense.

So in sum, QE is more of a public blind-folding trick than a monetary policy tool

Commercial banks, on the other hand, would not need to sell the securities they hold to the Fed before they can lend. They have been simply putting them as collateral to borrow money i.e. reserves from the Fed for decades. This is called repos or repository transactions between the 12 Federal reserve banks and commercial banks such as Citigroup, Bank of America and even smaller local banks across all states. There is also reverse repos i.e. Fed returns securities to banks and clears the reserves

To be sure, M2 and commercial bank credit are not the same thing. I mean the commercial bank lending is measured both in time and speed of turnover, while M2 simply shows you an amount. It is as if you are comparing "miles" to "miles per hour". QE simply changes the name of fiat dollars from securities to reserves. What it does not do is put those reserves into use.

Thanks, I understood much of this and the reason I searched for it was to try and determine the effect on M2, which was explained. I think I understand the effects when the Fed buys securitiedirectly from banks-the bank loses the securities and gains reserves, which increased only the Monetary Base-M2 is increased only if they lend. But what about when the Fed buys s from non-bank entities? That firm loses the securities and gains a deposit at its bank. So does not that lead to increase in M2?

I have a hunch that tremendous amounts of cash are being stockpiled in unregulated offshore banks. This will be the ammo that the major corps will use to trigger an avalanche of hyperinflation forcing the Fed to raise rates so quickly as to bring on a deflationary global economic collapse. And then the world will at last be their oyster as they use these reserves of "printed" money to redistribute wealth from industrialized countries to emerging market countries.

They won't do QE3 UNTIL AFTER a crash in the coming two months. Why? The Fed has to fight off Audit the Fed Bill and therefore wants to score political points.

Hi, thank you for your comment. I agree with you that QE effect comes with a lag. But how do we measure this time lag? That is the question. E.g. when they did QE1, they bought most of the bonds and ABS in the first 2 months, then spread out the remaining budget across longer timeframe. QE2 was more balanced with similar amounts bought each month. So at least, you can still say that QE1 which was over in early 2009 had little effect on lending and the money multiplier. It is too evident.

thx qobil, as always concise and to the point although oversimplification may sound like an ideology. i think you should also include information about the lag the effects of QEs come after...for economy is not a chemical exothermic reaction (it is barely a science)

Briefly, do you still think a stock market crash is coming even there's a QE3?

That is a great point, thanks. I have not given much thought to it - I should have. Just bear in mind that not all of them could benefit as some of them may be insolvent in a deflationary collapse. But some will make enormous gains, i can imagine...

Thank you for your comment. The money supply can get inflated ONLY when and if collective psychology is ready for it - not when the Fed pulls the trigger. And when the animal spirits wake up again (and they will), the Fed will take the credit, AGAIN.

This is a great post. What an education in only 4 minutes. These are some of the key points that old-timer Gary Shilling has keyed in on. People like Peter Schiff are running around telling everyone how inflated the money supply is getting. Thanks again for your research and concrete points.