Repo Market Oversubscribed (AGAIN)
The Fed had to step in and bail out the repo market AGAIN but this time it wasn't enough, their repo market operations were, of course, supposed to be temporary.
The Fed has now been in the repo market nonstop ever since. The last month the repo market was blowing up less often and requiring fewer additional reserves from the Fed.
But now there’s been a huge uptick in demand and the level of repo operations the Fed has committed to.
And we seem to forget, the repo market SHOULD NOT require the Fed’s permanent involvement.
The fact that the repo market isn’t getting any better shows beyond a doubt the system is broken.
The Fed doesn’t understand the problem, their only tool is money printing and lowering interest rates.
Unfortunately, those tools aren’t panaceas. Sooner or later the repo market will most likely take control and the Fed won’t be able to stop it.
IF YOU’RE INTERESTED IN THE REPO MARKET THIS VIDEO IS FOR YOU!
In this repo market video, I’m going to discuss the following.
- The recent repo market numbers.
- How the plumbing of the repo market actually works.
- What are the potential problems in the repo market?
Watch the video above to learn more!