Where finance and media intersect with reality


In the Blind Spot (BBBY, Quantitative Tightening, Aircraft Carriers)


This edition of the Blind Spot Wrap was compiled by Izabella Kaminska (IK) and Dario Garcia Giner (DGG).

Econ, Finance & Business etc:

  • An announcement by Bed, Bath, and Beyond (BBBY) management prior to market open on Wednesday has the Wall Street Bets community all excited. The stock’s price has now recovered from August lows of less than $10 a share to about $13.35.
  • The EU is to intervene in energy markets as it braces for energy shortages across Europe.
  • Homeowners are queuing for days to buy fuel in Poland.
  • The Fed says it has accelerated its quantitative tightening programme. But the NY Fed now reports that it has had to conduct a small value overnight repo operation with primary dealers and standing repo facility counterparties in signs that the financial system is already struggling to cope.

    I have a Bloomberg Opinion column out this week arguing that quantitative tightening will inevitably lead to pressure in the market for intraday funding, which has the capacity to bleed into overnight funding shortfalls and onwards. But I also highlight that there are now financial tools available — ironically stemming from crypto markets — that can help markets navigate these waters by creating a far more active and distributed market for intraday funds. – IK

  • Chinese banks are experiencing mortgage asset stress on their balance sheets. But why is there so little concern about western delinquencies in the face of spiralling energy costs and higher interest rates?

Crypto News:

Geopolitical Pivots:

Death & Taxes:

  • French tax authorities have deployed Google AI to detect thousands of undeclared swimming pools. The move has so far netted them around $10mn in previously uncollected tax revenues.
  • Mikhail Gorbachev, the former Soviet president that brought in perestroika and in so doing took down the iron curtain, has passed away. Memorable public performances included a starring role in a Russian Pizza Hut commercial, which openly mocked the impact of his reforms on the economy.

The X Files:

From the “Fake News” zone:

The Daily Blind Spot newsletter

Latest blog posts

If viewing on a mobile simply tap the QR code

Leave a Reply

Your email address will not be published. Required fields are marked *