The Fed Just Bailed Out the Repo Market (First Time Since 2019)<
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repo market in a serious way for the
very first time since 2019 when it blew
up last time. This means that you should
expect the Fed to start making changes
that result in more liquidity, easier
financial conditions, and potentially
meltups across asset classes. Because if
they don't, the entire financial system
collapses. Here's why. This is a chart<
collapses. Here's why. This is a chart
that shows the Federal Reserve's
intervention into the repo market. And
you can see for the past 5 years,
they've basically had zero activity in
the repo market until June 30th, where
they had to inject over 11 billion of
overnight cash. If you're not familiar
with the repo market, it's just where
banks go to get cash from each other.
One bank has extra collateral, anotherthey nad to inject over ii billion oT
overnight cash. If you're not familiar
with the repo market, it's just where
banks go to get cash from each other.
One bank has extra collateral, another
bank needs cash. they will agree to swap
the cash and collateral with each other
as long as there's the promise that in
the future they will repurchase it from
each other. Now, if this sounds like a
giant pawn shop, it is. If we go all the
way baak to prior to 2009,a lot of the<
https://youtu.be/SshDKNhXyS4?si=78gZ_Or0I68AwwCO<
http://take10charles.blogspot.com/2025/07/the-federal-reserve-fed-has-history-of.html
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