Tuesday, July 8, 2025

Bailouts ! Like 2008

The Fed Just Bailed Out the Repo Market (First Time Since 2019)<


0:02 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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