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Old 09-20-2019, 03:49 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,854
Squeezing liquidity out of the repo market

9/20 Why is the Fed pumping money into the banking system? – BBC
Well, because the banks need it,,,, because that is pretty much all they can do when ZIRP lays waste to the financial system

Liquidity Shortage Getting Worse: Fed's Repo Oversubscribed As Funding Demand Soars 50% Overnight
"What is immediately notable is that except for agency paper, there was a greater use of both Treasury ($40.9BN to $51.6BN) and Mortgage-backed ($11.7BN to $27.8BN) collateral."
So, they're dumping Treasury paper and mortgage backed paper. That tells you something.
"Yesterday's Fed repo operation - the first direct liquidity injection in a decade - was an unmitigated disaster, with the NY Fed forced to cancel it in the middle due to "technical difficulties" which nobody still know what they were"

9/20 Yield curve still inverted despite Fed rate cut – Mish
An ebb tide lowers all boats
9/20 Mark Spitznagel warns “They’ve created a snowflake market” – Zero Hedge
Reference to an avalanche?
9/19 Repo chaos tests Wall Street confidence in NY Fed’s Williams – Reuters
9/19 ‘This is crazy!’: Wall Street scurries to protect itself in repo surge – Bloomberg
9/19 Liquidity shortage getting worse: Fed’s repo oversubcribed again – Zero Hedge
9/19 Negative interest rates are just the price for the end of civilization – Hof Profit

9/19 China’s mighty trade engine Is stalling as negotiators seek deal – Bloomberg
Seeing this, Trump has put China up against a wall.
9/19 Debt-wracked Chinese companies dump US & other foreign assets – Wolf Street

9/20 The triumph of Trump’s foreign policy: backing off ‘disastrous war’ with Iran – ZH
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