KopTalk


Quick Links: View All | Latest News | Liverpool FC Forum | Off Topic Forum | KopTalk Members | Help



Topic Options
Rate This Topic
#627508 - 20/09/19 08:58 AM Fed Announces a 3rd Day of Emergency Funding!
Pickles Online   content
Under 23 Player

Registered: 23/12/15
Posts: 4283
On Thursday, the U.S. Federal Reserve pumped $75 billion into the financial system through overnight repurchase, or "repo" agreements, marking the third time it intervened in U.S. money markets in as many days. The last time the Federal Reserve flushed the banking sector with this much cash was the financial crisis of 2008.

The Fed stepping into the market to give more cash, unannounced, three days in a row, screams something is very wrong. There is a massive lack of cash at hand. We're also already in a very loose and cheap money environment with really super low interest rates and trillions in cash that has just been printed and injected in the market by the way of quantitative easing. The fact that the banks need $75 billion of extra cash every day, day after day, is a sign that something is dramatically wrong. The last time the banks were doing this to shore up their balance on the sheets was in 2008.

Usually, the repo process is nearly seamless. Most of the previous day’s trades just get rolled over into the next day’s repos, with a slight tinkering of the rates and slight shifts in the collateral. But this week has been unusual.

At the start of the week, the repo rate unexpectedly jumped higher, indicating that there was a shortage of dollars compared with demand. On Tuesday, the Fed stepped into the market by supplying $53 billion of cash in exchange for securities. On Wednesday, the Fed supplied $75 billion of cash–and said it had bids for an additional $5 billion of repos.

On Wednesday afternoon, the New York Fed announced that it would once again supply cash to the repo market on Thursday morning.

It’s not clear what has caused the cash crunch. On Monday, several investors pointed to developments in Saudi Arabia and the due date for corporate tax payments causing an unusual surge in demand for cash. But the stress has continued even as those events have receded.

Fed chair Jerome Powell was asked about the crunch at his press conference Wednesday but offered little by way of explanation. So the mystery continues alongside the New York Fed’s emergency funding.

https://www.theblaze.com/glenn-radio/federal-reserve-repo-market

Top

#627509 - 20/09/19 10:28 AM Re: Fed Announces a 3rd Day of Emergency Funding! [Re: Pickles]
EnergisedReds Offline
Liverpool Legend

Registered: 10/01/10
Posts: 20673
Originally Posted By Pickles
On Thursday, the U.S. Federal Reserve pumped $75 billion into the financial system through overnight repurchase, or "repo" agreements, marking the third time it intervened in U.S. money markets in as many days. The last time the Federal Reserve flushed the banking sector with this much cash was the financial crisis of 2008.

The Fed stepping into the market to give more cash, unannounced, three days in a row, screams something is very wrong. There is a massive lack of cash at hand. We're also already in a very loose and cheap money environment with really super low interest rates and trillions in cash that has just been printed and injected in the market by the way of quantitative easing. The fact that the banks need $75 billion of extra cash every day, day after day, is a sign that something is dramatically wrong. The last time the banks were doing this to shore up their balance on the sheets was in 2008.

Usually, the repo process is nearly seamless. Most of the previous day’s trades just get rolled over into the next day’s repos, with a slight tinkering of the rates and slight shifts in the collateral. But this week has been unusual.

At the start of the week, the repo rate unexpectedly jumped higher, indicating that there was a shortage of dollars compared with demand. On Tuesday, the Fed stepped into the market by supplying $53 billion of cash in exchange for securities. On Wednesday, the Fed supplied $75 billion of cash–and said it had bids for an additional $5 billion of repos.

On Wednesday afternoon, the New York Fed announced that it would once again supply cash to the repo market on Thursday morning.

It’s not clear what has caused the cash crunch. On Monday, several investors pointed to developments in Saudi Arabia and the due date for corporate tax payments causing an unusual surge in demand for cash. But the stress has continued even as those events have receded.

Fed chair Jerome Powell was asked about the crunch at his press conference Wednesday but offered little by way of explanation. So the mystery continues alongside the New York Fed’s emergency funding.

https://www.theblaze.com/glenn-radio/federal-reserve-repo-market



US cannot afford to have interest rates go up else it's a recession, probably the season why Iran was not bombed

Top


Moderator:  KopTalk Team 
Shout Box


Advertisements

Liverpool FC Discussion
The importance of not letting our momentum as a club slip
by Pickles
10/12/19 10:49 AM
SALZBURG V LIVERPOOL - MATCH THREAD
by EnergisedReds
10/12/19 09:37 AM
Leicester now Liverpool's biggest PL threat?
by Pickles
10/12/19 08:47 AM
Bobby Duncan
by Snakeye
10/12/19 06:28 AM
Matheus Pereira.
by AccaBoosty
09/12/19 10:18 PM

General Discussion
BANANA DUCT-TAPED TO A WALL SELLS FOR $120,000 AT ART BASEL
by Pickles
09/12/19 04:25 PM
Growlers things that make you happy thread!
by Pickles
06/12/19 01:22 PM
Music thread! (now epic)
by lumba
02/12/19 08:35 PM
pedo prince
by Markhutch1
29/11/19 10:53 AM
Extinction Rebellion
by EMP
20/11/19 08:54 PM

Top Posters (30 Days)
EnergisedReds 93
Pickles 73
ecnirp98 66
AccaBoosty 61
wilkij1975 45
van Gogh 40
Hercules/AF 58 38
Dunk 37
redordead13 27
Stanley Park 20