[awrence]

Hmmm can’t speak to the likelihood of their actual inflows but tens of billions of usd from global participants that are functionally shut out from usd pipes is really very reasonable. It’s 0.25% of M2.

What amuses me a bit is how shocked it can seem to people for them to “sit” on 80 bn dollars. It’s literally what they’re supposed to be doing! And no one can imagine they’re actually doing it. I don’t know. I like to think that’s what I’d do if I said that’s what I was doing… I feel like I would. But apparently we now think when someone is entrusted with a pile of money to keep as such they’d be irrational not to risk their customer funds and yolo into mismatching risk to try and pick up some yield… when did that become the expected norm?