Explaining Michael Howell's Global Liquidity Framework

Рет қаралды 6,689

Ай бұрын

In this episode, Nik summarizes his recent conversation with CrossBorder Capital founder Michael Howell. After Nik interviewed Michael on May 9th, viewers asked us for more education surrounding some of the key concepts covered, including how to understand Howell's liquidity index itself, Treasury bill monetization by banks, and duration's impact on financial markets. Nik concludes with why global liquidity matters for bitcoin.
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Пікірлер: 85

@dr.k.math.777 Ай бұрын

This is more educational than an MBA. So grateful to you.

@jong8427 Ай бұрын

I bought Michael Howell’s book a while ago but didn’t get past the 2nd chapter. Thanks to Nick’s excellent work, I have the confidence to give it another try. Thank you!

@tibx8067 Ай бұрын

I am a paid subscriber to the The Bitcoin Layer and indeed I asked Nick on substrack if he could explain in simpler terms the Michael Howell interview as my knowledge in economivs is limited. And here we are, Nick did the video! So grateful to him and to be a paid subscriber! Best investment for just 10$/month! Thank you again Nick!

@user-nu5ww1el4q Ай бұрын

We want more episodes like that. We want to explain the whole concept of global liquidity further!

@EliteElizabeth Ай бұрын

i will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Beatrice gunter

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@EliteElizabeth Ай бұрын

You trade with Beatrice gunter too? Wow that woman has been a blessing to me and my family.

@ClaraClare-xo3ok Ай бұрын

I'm new at this, please how can I reach her?

@ValentineStone-pf9di Ай бұрын

I was skeptical at first till I decided to try. Its huge returns is awesome. I can't say much

@mikestaub 28 күн бұрын

This is your best video yet. Crystal clear.

@prats87622 Ай бұрын

Great job in explaining the complex topic Thank you

@PhantomKYP Ай бұрын

Amazing video. Just found your channel recently but I really like how slowly you described everything and the pauses you took to let us understand the material. Thank you!

Ай бұрын

I read j his book but didn’t understand one third of it. Extremely complicated. It’s starting to make sense through your video. Thanks for this. Please continue

@michaelfelli7661 Ай бұрын

Before we can have a conversation, we have to agree on the definitions. Else, we are speaking past one another. Yes. Liquidity to Howell is different than liquidity to the common person. Kudos.

@fertoor Ай бұрын

Masterpiece again! Very grateful.

@TJL2010 Ай бұрын

Gotta watch this twice😁

@extraclip Ай бұрын

What creates the "Top" of the Liquidity Index and how can you spot it?

@MarceloCYaluk Ай бұрын

Thanks so much Nik. Please keep doing these masterclasses. Cheers!

@MacroMaxwell Ай бұрын

This video is an awesome explanation of global liquidity. I feel like I’m getting an Ivy League education in macro economics. People want money but they don’t know how money actually works. Tell all of your friends and family to subscribe to this channel if they want to know how money and banking works.

@christianng2828 Ай бұрын

Awesome stuff! Look forward to more analysis of howell’s liquidity framework. Currently reading his book

@simonmaverick7018 Ай бұрын

Great attempt at explaining these complicated concepts, and how governments keep the music going, for now. 2 points:- 1) It would be great to understand that if the Fed drops rates initially then asset prices will drop. Why? 2) From what I understand from Michael, recession happens when the yield curve un-inverts and not when it’s inverted. Why? Thx.

@drygavich1 8 күн бұрын

1) because historically Fed drops rates when the economy slows down, so it's like an approval for investors to sell

@voonyeefong785 21 күн бұрын

Great content!!

@Atteoto Ай бұрын

This channel is a gold

@nicholasminasian777 Ай бұрын

The lessons keep coming outside of the classroom

@TraderMowgli Ай бұрын

Really incredible job. Cheers!

@scottnovitsky9253 Ай бұрын

I've read the book but I'd suggests listening to this episode several times before or as you're reading it.

@patrick3926 Ай бұрын

Great explanation thank you

@tpndtbk Ай бұрын

Super helpful! Thanks!

@westra4 Ай бұрын

Thx Nik

@DeFi_NOMad Ай бұрын

Thanks for the Great explanation

@jonhaddal Ай бұрын

Nik = GOAT

@AlexOdalisca Ай бұрын

Thanks you very much 😊

@gustavosmith9387 Ай бұрын

Would it be possible to include slides on processes?

@green3ggsnham 5 күн бұрын

pls go deeper lol more episode pls this is awesome sauce

@goldeneastgun Ай бұрын

So then, why did so many US regional bank go under? If customer money was locked up, couldn't they go to the "pawn shop" and get enough liquidity to cover the bank run that they were experiencing? Can I assume it was the speed at which the bank run occurred? Also, if the treasury has to print to cover their commitment to bonds, why even bother issuing bonds in the first place? Why not just print what they need since this is what it all effectively works out to be anyways?

@JulianDrangosch Ай бұрын

is there an API where one can get the data for liquidity or raw data to build it?

@GETITDONE_11 Ай бұрын

This would be great

@poplop1346 Ай бұрын

Thnx for ur eduction , you make the complicated staff very easy to understand , I have question if the commercial banke monetizes the t bill , do they using reserve money , or , create that money as they lend somebody else, This I understand the commercial bank buy the t bill from the auctions they using reserves , and they buy from the second market not using the reserve , they credit the money ( out of thin air ) to the primary dealer , is this right ?

@RohitJammwal Ай бұрын

I dont think Commercial Banks have the ability to create money out of thin air. This Commercial Bank t-Bill Monetization part is a little tricky. Need more explanation i guess

@0utere Ай бұрын

TRW we out'ere!

@gotya7158 Ай бұрын

Gonna make us rich

@kbl5007 Ай бұрын

I thought T-bill monetization by commercial banks just mean the Commercial banks sell their T-bills for cash or use T-bills as collaterals in the repo-market for cash? regardless on how they were purchased? Also, why would they want to suppress the yield curve at the longer term at 10 year, 20 year etc?

@cavokmc Ай бұрын

I would suggest anytime you use the word money that you put a prefix in front of it...broad, base, shadow so that the audience knows what your talking about. The conversation sort of becomes vague and confusing when you say money and there are different forms of money.

@musachoudhary3392 Ай бұрын

A diagram for monetization would be nice

@musachoudhary3392 Ай бұрын

why does the commercial bank need to create a deposit for the dealer when are crediting the reserve account?

@musachoudhary3392 Ай бұрын

or is the deposit referring to when the commercial bank sells in the secondary market?

@RohitJammwal Ай бұрын

Agreed, we need a diagram. The T-Bill Monetization by Commercial Banks was a little confusing. What does 'taking down inventory' mean here? Does Inventory mean T-bill? How is money bring created in that scenario? Bank had money. It 'bought' Inventory (T-Bill) from the Dealer. And sold it ahead to someone else. How is money/liquidity created in this case?