#recession #money #recession2023 #money #inflation #deflation #interestrates #dollar #economy #credit #interestrates #liquidity Regulators are almost feuding with hedge fund "speculators" over something called a basis trade. The former alleges it is a huge systemic risk, and they are right though for the wrong reasons. In the latter group, supporters point out funds have become necessary balance sheet warehouses for Treasuries because of a key gap. Here we'll examine what that gap really is and why it actually matters to find out who is right (spoiler: both). Eurodollar University's Money & Macro AnalysisBloomberg: Griffin Says Scrutiny of SEC Basis Trade ‘Utterly Beyond Me’https://www.bloomberg.com/news/articles/2023-10-25/ken-griffin-says-sec-scrutiny-of-basis-trade-utterly-beyond-meOFR WP 2021-01: Hedge Funds and the Treasury Cash-FuturesDisconnecthttps://www.financialresearch.gov/working-papers/files/OFRwp-21-01-hedge-funds-and-the-treasury-cash-futures-disconnect.pdfTwitter: https://twitter.com/JeffSnider_AIPhttps://www.eurodollar.universityRealClearMarkets Essays: https://bit.ly/38tL5a7