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ECON A crack just emerged in the financial markets: The NY Fed spends $53 billion to rescue the overnight lend
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  1. #81
    I agree it doesn't sound great, but it also doesn't sound like 200B. If I lend you $10 every night for a year and you pay me back each following morning, I loaned you $10 365 times. It's misleading to say you were $3650 in the hole.
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  2. #82
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    Here is what the Fed says about Repo's....

    Repurchase and Reverse Repurchase Transactions



    • The Fed uses repurchase agreements, also called "RPs" or "repos", to make collateralized loans to primary dealers. In a reverse repo or "RRP”, the Fed borrows money from primary dealers. The typical term of these operations is overnight, but the Fed can conduct these operations with terms out to 65 business days.
    • The Fed uses these two types of transactions to offset temporary swings in bank reserves; a repo temporarily adds reserve balances to the banking system, while reverse repos temporarily drains balances from the system.
    • Repos and reverse repos are conducted with primary dealers via auction. In a repo, dealers bid on borrowing money versus various types of general collateral. In a reverse repo, dealers offer interest rates at which they would lend money to the Fed versus the Fed's Treasury general collateral, typically Treasury bills.

    Among the tools used by the Federal Reserve System to achieve its monetary policy objectives is the temporary addition or subtraction of reserve balances via repurchase and reverse repurchase agreements in the open market. These operations have a short-term, self-reversing effect on bank reserves.

    Repurchase agreements are made at the initiative of the trading desk at the New York Fed (“the Desk”). The Desk implements monetary policy for the Federal Reserve System at the behest of the Federal Open Market Committee (FOMC).

    Repos are the most common form of temporary open market operation
    , and are used to temporarily add balances to those already in the system as a result of securities purchased and held in the SOMA portfolio. The SOMA portfolio is grown via securities purchases, also called permanent open market operations.

    RPs and reverse repurchase transactions are particularly useful in offsetting temporary swings in the level of bank reserves caused by such volatile factors as float, currency held by the public and Treasury deposits at Federal Reserve Banks.

    While the mechanics of a repo involve buying and then reselling securities at a set price and a set time, at its financial essence, a repo is a collateralized loan. Fed repos can be conducted for terms anywhere from one to 65 business days. They are usually overnight, though rarely longer than 14 days.

    There are two main types of settlement methods for repos: triparty and “delivery vs payment” or DVP. Fed repos are done via triparty settlement, which means that the Fed and the primary dealers use a triparty agent to manage the collateral. In a triparty repo, both parties to the repo must have cash and collateral accounts at the same triparty agent, which is by definition also a clearing bank. The triparty agent will ensure that collateral pledged is sufficient and meets eligibility requirements, and all parties agree to use collateral prices supplied by the triparty agent.

    The Desk selects winning propositions on a competitive basis. Each dealer is requested to present the rates they are willing to pay for the agreements versus various types of collateral. The three types of general collateral, or GC, the Fed accepts are marketable U.S. Treasury securities (including STRIPS and TIPS), certain direct U.S. agency obligations, and certain agency “pass-throughs” (or Mortgage Backed Securities, often called MBS).

    The significance of the “GC” designation on the collateral is that GC collateral is fungible. That is, the Fed is not looking for specific securities; rather it is looking for any of the eligible securities that do not have scarcity value. As such there are a number of securities that would satisfy the requirements, and neither the dealer nor the Fed needs to know which specific security or securities are going to ultimately be pledged to a winning proposition. The Desk establishes relative values across the three collateral types, and then uses these values to select the best bids presented.

    The New York Fed makes payment for the securities by crediting the reserve account of the dealer's triparty agent, a commercial bank. This act of crediting the bank's account actually creates reserve balances. When the repo matures, the dealer returns the loan plus interest, and the Fed returns the collateral. The return of funds to the Fed extinguishes the reserves that were originally created by the repo.

    The collateral pledged by dealers towards the repo has a “haircut” applied, which means they are valued at slightly less than market value
    . This haircut reflects the underlying risk of the collateral and protects the Fed against a change in its value. Haircuts are therefore specific to classes of collateral. For example, a U.S. Treasury bill might have one haircut rate, while an agency coupon might have a different haircut.

    Fed reverse repos are settled DVP, where securities are moved against simultaneous payment. In this case, the Fed sends collateral to the dealers’ clearing bank, which triggers a simultaneous movement of money against the security. At this point, reserve balances are extinguished. When the deal matures, the dealer sends the collateral back to the Fed DVP, which triggers the simultaneous return of the dealer’s funds. This act re-creates the reserve balances that were extinguished on the front leg of the transaction.

    Market participants frequently use repurchase agreements and RRP transactions to acquire funds or put funds to use for short periods. However, transactions not involving the central bank do not affect total reserves in the banking system.

    https://www.newyorkfed.org/aboutthef...int/fed04.html
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  3. #83
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    Quote Originally Posted by bw View Post
    But it's unwound the next day, so it's not 200B, it's 75B or so riding for three days, right? Or am I missing something?
    Technically, Yes, they are recycling the $75 Billion nightly. And the Fed is NOT meeting the demand with $75 billion nightly offering.

    Requested funds: Day 1 was $53 Billion, Day 2 was $80 Billion requested, Day 3 is $84 Billion requested.

    The monetary requests are growing larger.
    1) There could be more players needing an emergency funds.
    2) Or the same players need more funds.

    Either way, the markets are short liquidity by up to $85 Billion per night.
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  4. #84
    Quote Originally Posted by BV141 View Post
    Either way, the markets are short liquidity by up to $85 Billion per night.
    I'm not trying to downplay that we have a situation here.
    Better to be a warrior in a garden than a gardener in a war.

  5. #85
    Quote Originally Posted by billet View Post
    Sound advice, but add silver as well.
    What cha gonna do when they outlaw the holding of gold by private citizens? It's not like they haven't done this in the past.

  6. #86
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    According to the article above (#82), they may take up to 65 days to pay. So the total may be a couple of hundred billion out there.

  7. #87
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    Quote Originally Posted by Hfcomms View Post
    I was watching Bloomturd for awhile this morning and they did talk a bit about the Repo rates but they downplayed it.
    Bloomberg radio is actually pretty good in the mornings. Bloomberg Surveillance is the show title from like 7-10. It usually has very good guest who can do their thing from offsite over the phone -vs- having to go into the studio. And you can stream it over the internet either direct from their website or using a 3'rd party like i heart radio

    tbd

  8. #88
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    Getting back to the repo market.

    You need to think of it as a game of musical chairs. Each evening the music is playing and cash and securities are swapped with the expectation that the next morning things will be unwound and the securities will go back to their rightful owners. Its a good deal when it works cause folks with cash can make a few more dollars on their holdings using a trade that is classified as a safe investment. Its when the music stops and someone get stuck holding unwanted securities that the market will truly break down. The value of securities can change drastically over night usually making its big moves in a down direction. Its like rather then one chair being removed but say half. So a lot of folks will be stuck standing there. And this is how firms fail when the value of securities do not meet up with expectations and their capital falls below acceptable levels.

    tbd

  9. #89
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    Quote Originally Posted by The Snack Artist View Post
    What cha gonna do when they outlaw the holding of gold by private citizens? It's not like they haven't done this in the past.
    That is a different argument but the short version is very few people own physical gold in the U.S. today other than personal jewellery. Gold was circulating as currency in 1933 and not so today. People trusted the government in 1933 and were willing to turn in the gold for the 'greater good'....not so today! Many very wealthy people own physical gold and you know that no laws are going to be passed that will attempt to take their gold.

    They will have as much luck banning the private ownership of gold as they do the private ownership of firearms and it would actually be easier to see who owns firearms than who owns gold.
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  10. #90
    Quote Originally Posted by The Snack Artist View Post
    What cha gonna do when they outlaw the holding of gold by private citizens? It's not like they haven't done this in the past.
    Take out as many bankers as possible..... err.. to dinner...yeah thats the ticket.

  11. #91
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    Quote Originally Posted by The Snack Artist View Post
    What cha gonna do when they outlaw the holding of gold by private citizens? It's not like they haven't done this in the past.
    What gold and silver?????

  12. #92
    Quote Originally Posted by The Snack Artist View Post
    What cha gonna do when they outlaw the holding of gold by private citizens? It's not like they haven't done this in the past.
    Reminds me of the headline on CNN's homepage today: Colt is going to stop making AR-15s for consumers, it says.

    Don't know if that was posted here...I just logged on.
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  13. #93
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    Quote Originally Posted by night driver View Post
    Anybody who lives in Ohio (and a few other central states) KNOWS FOR A FACT that banks get shut down. During the S&L "Crisis" virtually ALL banks were shut down for one weekend (IIRC) and then BANKS opened back up and S&L's were closed for roughly the following week (Again, IIRC). this was in 1987.


    Savings and Loan Crisis: Definition, Cause, Cost - The Balance

    https://www.thebalance.com › Investing › US Economy › Hot Topics

    The crisis cost $160 billion. Taxpayers paid $132 billion, and the S&L industry paid the rest. The Federal Savings and Loan Insurance Corporation paid $20 ...

    Savings and loan crisis - Wikipedia

    https://en.wikipedia.org › wiki › Savings_and_loan_crisis

    The savings and loan crisis of the 1980s and 1990s was the failure of 1,043 out of the 3,234 ..... who were accused of improperly intervening in 1987 on behalf of Charles H. Keating, Jr., chairman of the Lincoln Savings and Loan Association.
    ‎Background · ‎Causes · ‎Failures · ‎Scandals

    Savings and Loan Crisis – S&L Crisis Definition - Investopedia

    https://www.investopedia.com › Economy › Economics

    May 16, 2019 - The savings and loan (S&L) crisis was a slow-moving financial disaster that came to a head in the ... By 1987 the FSLIC had become insolvent.

    Savings and Loan Crisis | Federal Reserve History

    https://www.federalreservehistory.org › essays › savings_and_loan_crisis

    Emblematic of the excesses that took place, in 1987 the FSLIC decided it was cheaper to ... “The Cost of the Savings and Loan Crisis: Truth and Consequences.
    IIRC, Senators McCain and Glenn were involved in that. They skated, though.

    Sorry for the thread drift.
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  14. #94
    They skated? No way...you don't say.
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  15. #95
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    (Bloomberg) -- The Federal Reserve added liquidity for a fourth straight day to a vital corner of the funding markets, helping further stabilize rates as investors remain concerned that fresh bouts of stress may be felt in the weeks ahead.

    The New York Fed injected another $75 billion Friday through an overnight repo operation. That followed operations of the same size on Wednesday and Thursday, and $53.2 billion on Tuesday. The actions, commonplace in pre-financial crisis times, temporarily add cash, with the Fed taking government securities as collateral. Wall Street bond dealers submitted about $75.6 billion of securities for Friday’s Fed action, lower than the previous two days’ levels. Many analysts are already predicting the Fed will do a similar operation on Monday.

    “Given it was slightly oversubscribed and the rate was at 1.8%, its shows the Fed is playing an important role in calming the market and needs to keep doing these operations,” said Priya Misra, head of global rates strategy at TD Securities in New York. “But overall, these operations are only a temporary fix, it’s a band aid. The big fear is that around quarter-end, when dealer balance sheets are more constrained that these Fed operations won’t work as well any more.”

    The latest addition of liquidity -- with the Fed making clear it’s ready to do more as needed -- follows the Federal Open Market Committee’s move Wednesday to reduce the interest rate on excess reserves, or IOER, by more than their main interest rate -- all attempts to quell money-market stresses.

    The operations have calmed the funding market, with repo rates declining to more normal levels after soaring to 10% Tuesday, four times last week’s levels. Overnight general collateral repurchase agreement rates remained steady Friday, trading around 1.90%, according to ICAP.

    The Fed effective on Thursday was 1.9% -- within the central bank’s target rate range of 1.75% to 2%. That compares to 2.25% on Wednesday, and 2.3% Tuesday -- when it busted above the top of the Fed’s previous target band, before policy makers lowered borrowing costs on Wednesday.

    However, there are signs of investor apprehension about future funding levels, which is manifesting in different ways.

    Treasury bill sales on Thursday were met with a poor reception, as investors demanded to be compensated via higher yields for locking up cash. And the rate on two-week repo, which would fund investors through the end of the quarter, is around 2.58%, ICAP data show.

    Meanwhile, in cross currency basis -- which show floating-rate payments in different currencies -- the premium for the Australian dollar over its U.S. counterpart collapsed by the most in eight years during Asian trading hours.

    Lou Crandall of Wrightson ICAP said in a note this morning that next week may bring more funding pressures in repo.

    “Bill settlements as well as the early liquidity-chilling effects of the approaching quarter-end statement date could start to move repo rates higher,” Crandall wrote.

    (Adds comment in 10th paragraph.)

    To contact the reporters on this story: Alexandra Harris in New York at aharris48@bloomberg.net;Liz Capo McCormick in New York at emccormick7@bloomberg.net

    To contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Debarati Roy, Mark Tannenbaum

    For more articles like this, please visit us at bloomberg.com

    ©2019 Bloomberg L.P.


    https://finance.yahoo.com/news/fed-i...124014326.html

  16. #96
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    Another $75 billion today? No big deal as it’s just money printed out of thin air today which is going to go ‘poof’ tomorrow. So what is backing this system.....debt? Not to worry, Bloomberg reported this morning that ex New York Fed head Dudley said ‘don’t worry we got this’. Sounds reminiscent to Bernanke saying in early 2008 that he didn’t forsee any significant problems in the near future.
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  17. #97
    Quote Originally Posted by Hfcomms View Post
    Sounds reminiscent to Bernanke saying in early 2008 that he didn’t forsee any significant problems in the near future.
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  18. #98
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    This is almost certainly not any kind of emergency situation. But it is another indication of the shaky financial circumstances we find the world in now.
    I hope Trump can hold things together until after the election. Some days I think he will and some days I think maybe not. The most likely of course is that things will hold together, maybe for quite a long time yet.

  19. #99
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    Quick Note: "Dollar Shortage" IS A LIE

    Folks, the claim being run about a "dollar shortage" leading to the repo market spasms is a bald-faced lie and anyone running that crap is committing a fraud upon the public -- the purpose of which should be exposed and then they should be indicted, prosecuted, jailed until dead and then their remains used for fishfood.

    Why? Because at its root it is quite obvious that someone -- or some group of someones -- is running an extortion scheme.
    It is a fact that there is well north of a trillion dollars at the Fed in the form of excess reserves. These are funds that the banks can choose to pull and use for repos, lending or whatever -- they just choose not to.
    To the extent that The Fed has encouraged that and, instead of slamming by name the firms that created that spike the last couple of days and nailing them with regulatory sanction they instead launched two repos is outrageous.

    There is no dollar "shortage" when over a trillion worth of excess dollars are being intentionally stuffed into The Fed for the purpose of earning interest from The Fed on same (at 2.1%) when The Fed could have simply whacked that rate to zero to make that game instantly uneconomic.

    Don't believe the flat out bullcrap coming from certain corners of the Internet and other media -- when there's a trillion dollars laying around on purpose there is no shortage of dollars because "someone" wants a measly $50 or $75 billion on an overnight basis.

    https://market-ticker.org/akcs-www?post=236872

    Comments?
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  20. #100
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    Quote Originally Posted by hiwall View Post
    This is almost certainly not any kind of emergency situation.
    Not yet. However, as we know perceptions and confidence in the system is everything when your at the precipice of the biggest bubble in history. Money is nervous and eying the exits. Many think they are smart enough to see it coming and get out before the crowd. With this being the first time since the crisis the Fed has to intervene in the repo market at the very least it’s concerning. With another $75B today and if this continues into next week and the injections grow larger I think it’s not just a sign but a giant red road flare.
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  21. #101
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    News ain't getting better:
    https://www.zerohedge.com/markets/li...ces-term-repos

    Liquidity Scramble: Fed Announces Overnight Repos Every Day Next Week, Introduces Term Repos

    Despite what the title of the Zerohedge article states, an embedded table, in the article shows Repos are extended until Oct. 10th!
    The Minimum offered Repo is NOW $75 Billion per night (as opposed to this week, where the maximum Repo offered was $75 Billion/night.
    )

    Yesterday we reported that Goldman now expects the Fed to restart Permanent Open Market Operations, i.e., bond purchases, i.e., QE some time in November. For those who missed it, Goldman assumes a roughly $15bn/month rate of permanent OMOs, "enough to support trend growth of the balance sheet plus some additional padding over the first two years to increase the size of the balance sheet by $150bn", in the process restoring the reserve buffer and eliminating the current need for temporary OMOs.

    That strategy would result in balance sheet growth of roughly $180bn/year and net UST purchases by the Fed (the sum of the red and grey bars) of roughly $375bn/year over the next couple of years.

    However, assuming Goldman is correct, there would be a little over a month before such POMO returned to permanently increase the size of the Fed's balance sheet, potentially resulting in a continued liquidity shortage for the next 6 or so weeks.

    Which probably explains why moments ago, the Fed surprised market watchers who were expecting the Fed to continue conducting only overnight repos, but announcing that not only would it conduct overnight $75 Billion repos every day from Monday until Thursday, October 10, but it would also introduce 2 week term repos with a total size of "at least $30 billion" for the first time since the financial crisis.

    This is what the NY Fed said moments ago in a statement regarding repurchase operations:

    In accordance with the Federal Open Market Committee (FOMC) directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct a series of overnight and term repurchase agreement (repo) operations to help maintain the federal funds rate within the target range.

    The Desk will offer three 14-day term repo operations for an aggregate amount of at least $30 billion each, as indicated in the schedule below. The Desk also will offer daily overnight repo operations for an aggregate amount of at least $75 billion each, until Thursday, October 10, 2019. Awarded amounts may be less than the amount offered, depending on the total quantity of eligible propositions submitted. Securities eligible as collateral include Treasury, agency debt, and agency mortgage-backed securities. Additional details about the operations will be released each afternoon for the following day’s operation(s).
    What are the implications from the above? There are several, and they are concerning.

    First, by expanding the "plumbing" arsenal from just overnight repos to three "at least $30 billion" term repos for at least one week, the Fed is telegraphing that it was expecting the overnight repo oversubscription situation to continue indefinitely, which in turn suggests that the NY Fed is worried the dollar funding shortage may continue, and as such it is expanding its toolbox to release up to at least $90 billion in additional liquidity, which together with the $75 billion in rolled overnight repo, would unlock as much as $165 billion in additional liquidity at the end of next week.

    As a reminder, Goldman calculated that the Fed's restart of POMO would increase the size of the Fed's balance sheet by $150 billion, which is almost in line with the $165 billion in liquidity that the Fed will unlock in the form of "sterilized" repo operations. In other words, the Fed just confirmed that the reserve shortfall is likely at least $165 billion, and in doing so, it also indicated that a long-term solution will need to be reached, one which almost certainly will validate the prediction that QE/POMO is coming in November.

    Second, as noted earlier, whereas overnight repo rates have stabilized, term repo rates remain elevated, especially those terms that capture either quarter or year-end, times when the US financial system traditionally suffers from a material liquidity shortfall: "The term market is still quite choppy," confirmed Subadra Rajappa, head of rate strategy at Societe Generale in New York. As Bloomberg further adds, for the 10-year note futures contract versus the cheapest-to-deliver Treasury security to Dec. 31, the basis Friday implied a term repo rate of about 2.15%. While that’s down from about 2.40% late Thursday, it remains above the Fed’s target range for its benchmark rate, and is also above today's G/C overnight repo rate of 1.90%, with Alex Li, head of U.S. rates strategy at Credit Agricole, noting that elevated term rates are a problem because of the quantity of capital at risk.

    Third, the reason why the Fed was likely forced to launch term repo, is because while investors have called for measures that will permanently boost reserves, such as POMO/QE, the Fed has so far refrained from embarking on a longer-term solution to ease the funding stress, writes Bloomberg's Elizabeth Stanton. Specifically, Chair Powell said after Wednesday’s policy decision that he didn’t see "any implications for the broader economy" from the repo crunch, which prompted traders to exit long basis trades - long positions in Treasuries hedged with shorts in futures - which normally perform well when the Fed is cutting rates. "Futures outperformed cash amid the spike in repo and in the wake of an FOMC that could have done more to instill confidence in its attention to the issue," Credit Suisse strategist Jonathan Cohn said. “The move flushed out significant long basis positioning.”

    In short, despite the generous use of the $75 billion overnight repo, it wasn't enough, and STIR and repo traders were spooked enough to force the Fed to engage in yet another form of liquidity injection, in the form of term repos.

    If and when that too is insufficient, the Fed will have just two options: pursue a standing repo facility, which it is already doing to an extent with term repos, and eventually launch outright POMO (i.e. QE), to boost the level of reserves in the system, as it is now obvious that $1.3 trillion in "excess" reserves is nowhere near enough for the US financial system, which needs at least another $400 billion in reserves - as shown in the chart below - to see the FF-IOER spread stabilize.

    What does this means from a practical standpoint? The panic in repo will almost certainly fade at least in the near term, however, look for elevated term repo rates, since they will all fall beyond the quarter end period when repo rates tend to soar as banks withdraw liquidity in order to "window dress" their balance sheets. And certainly look for a surge in term repos that capture year end, which as a reminder, saw last year's repo rate explode to above 4%.

    One final practical implication: since the market is now convinced it urgently needs the Fed to restart POMOs, expect another "near-death" event for the repo market some time in October/early November, which will be the catalyst forcing the John Williams Fed to move beyond mere repos and activate POMOs as the liquidity-injecting operation of choice.

    And with that, QE4 will have arrived.
    Last edited by BV141; 09-20-2019 at 11:36 AM.
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  22. #102
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    Quote Originally Posted by hiwall View Post
    This is almost certainly not any kind of emergency situation. But it is another indication of the shaky financial circumstances we find the world in now.
    Ignoring the signs of a heart attack can terminate one's life.
    The Fed has now extended Repos from Sept 16 to Oct. 10.
    This situation IS NOT contained!

    To paraphrase the head of the ECB after the 2008 Banking Crises, "When things get bad, you MUST lie."
    Do you think the Banks would tell you the truth and endanger THEIR wealth?

    One last thing, Greg Hunter had a conversation with Ron Kirby as reported on the weekly news wrap-up on 9/19.
    To closely paraphrase what Kirby said to Greg Hunter. "If this goes on for a week, it's not a problem. But I reserve the right to change my mind if this gets extended beyond a week."

    We just crossed Kirby's threshold and it's been pushed to a 4 week Repo.
    Who is Ron Kirby, the first Derivatives trading in North America (as Canada rolled out derivatives trading before the Americans.
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  23. #103
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    Quote Originally Posted by DHR43 View Post
    Quick Note: "Dollar Shortage" IS A LIE

    Why? Because at its root it is quite obvious that someone -- or some group of someones -- is running an extortion scheme.
    It is a fact that there is well north of a trillion dollars at the Fed in the form of excess reserves. These are funds that the banks can choose to pull and use for repos, lending or whatever -- they just choose not to.
    To the extent that The Fed has encouraged that and, instead of slamming by name the firms that created that spike the last couple of days and nailing them with regulatory sanction they instead launched two repos is outrageous.


    Comments?
    Would this be a few of Leo Wanta's trillions???
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  24. #104
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    But, BV, it IS contained.

    to Sol 3.

    Pretty sure the ISS hasn't been infected yet.

    /sarc



    MUCH faster than '08. Cory Hamasaki was RIGHT. When the time comes if you blink yer gonna miss it.

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    Go to the 16:30 mark for Greg Hunter's discussion with Ron Kirby (on Day 2 of the Repos.)
    Total video is sub 33 minutes.
    https://www.youtube.com/watch?v=EpQaaZUbq4M
    We are apt to shut our eyes against a painful truth... For my part, I am willing to know the whole truth; to know the worst; and to provide for it. --Patrick Henry

  26. #106
    Quote Originally Posted by BV141 View Post
    First, by expanding the "plumbing" arsenal from just overnight repos to three "at least $30 billion" term repos for at least one week, the Fed is telegraphing that it was expecting the overnight repo oversubscription situation to continue indefinitely
    Ok, that's 630B minimum after a week. Pretty soon we're talking real money.
    Better to be a warrior in a garden than a gardener in a war.

  27. #107
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    I don't pretend to understand a bit of this. All I know is that someone (I'm assuming banks) are short cash overnight. It seems that usually one will lend to another but that's not the case here because it appears that everybody is short. So the government steps in. And, now, it appears that the balance is no longer a quick overnight thing but multi-weeks.

    I don't know, as I said. Someone help me out here with simplified information. To me it appears that banks are facing a liquidity crisis -- and, that, more than a simple overnight shortage.

    Am I way off here?

  28. #108
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    The banks were still getting the money they needed but instead of paying around 2% interest it was 5% or more - supposedly up to 10%

  29. #109
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    Which the will reluctantly pass on to their customers. /snark
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  30. #110
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    Wife and I went to our bank this morning to wire some funds out... the bank was having "server problems" and could only accept deposits. The supervisor called a few other branches to determine if they could accommodate our bank wire. One branch said they were having intermittent issues but were functional for the most part so we drove there and wired the funds out.

    The ability of a bank to shut down local commerce was not lost on my wife, always the quick learner. We spent the rest of the morning discussing where to relocate our savings where immediate access could not be impeded.
    “Don’t pick a fight, but if you find yourself in one, I suggest you make damn sure you win.” - John Wayne

  31. #111
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    Sounds like the Fed just announced that they plan repos all next week too.

  32. #112
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    Quote Originally Posted by hiwall View Post
    Sounds like the Fed just announced that they plan repos all next week too.
    I was always under the impression that a FED REPO loan like this was due to a dire emergency. Now, the emergency is absolute through all of next week? I don't like this. Something is abnormal.

  33. #113
    I am wondering if the derivatives market has anything to do with this and bankers trying to adjust for Brexit.

  34. #114
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    Quote Originally Posted by alpha View Post
    Wife and I went to our bank this morning to wire some funds out... the bank was having "server problems" and could only accept deposits.

    Interesting anomaly that they could accept electronic deposits just fine but not withdrawals eh?
    What is the lake of fire? What is it's purpose? Is the lake of fire eternal hell? Is there any hope of escape for those cast into this lake?
    http://bible-truths.com/lake1.html

  35. #115
    Well the party is starting and those in the know are headed for the hills being the CEOs.

  36. #116
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    Quote Originally Posted by hiwall View Post
    Sounds like the Fed just announced that they plan repos all next week too.
    Oh No, even better.
    1) Repos all the way out to Oct. 10... as I posted earlier
    2) Repos increasing to $90 Billion AND move from overnight loans to two week loans
    https://www.zerohedge.com/markets/cl...alt-repo-panic

    As noted earlier today, following several days of oversubscribed overnight repo operations to ease liquidity pressure in the market, on Friday the Fed announced it would also offer up to $90bn in two-week long loans to further reduce funding pressures during the notorious quarter-end period when liquidity tends to collapse.
    We are apt to shut our eyes against a painful truth... For my part, I am willing to know the whole truth; to know the worst; and to provide for it. --Patrick Henry

  37. #117
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    Quote Originally Posted by BV141 View Post
    Oh No, even better.
    1) Repos all the way out to Oct. 10... as I posted earlier
    2) Repos increasing to $90 Billion AND move from overnight loans to two week loans
    https://www.zerohedge.com/markets/cl...alt-repo-panic
    I'm so dumb about this. Who are these loans being given to? Banks, companies, governments? I really don't know.

  38. #118
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    Quote Originally Posted by TorahTips View Post
    I'm so dumb about this. Who are these loans being given to? Banks, companies, governments? I really don't know.
    Loans to the Banks.
    We are apt to shut our eyes against a painful truth... For my part, I am willing to know the whole truth; to know the worst; and to provide for it. --Patrick Henry

  39. #119
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    Quote Originally Posted by BV141 View Post
    Loans to the Banks.
    Does this denote illiquidity for those banks? This is apparently not an overnight loan anymore - days if not weeks.

  40. #120
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    The bulls-eye is probably in a different direction.

    Quote Originally Posted by DHR43 View Post
    Quick Note: "Dollar Shortage" IS A LIE

    Folks, the claim being run about a "dollar shortage" leading to the repo market spasms is a bald-faced lie and anyone running that crap is committing a fraud upon the public -- the purpose of which should be exposed and then they should be indicted, prosecuted, jailed until dead and then their remains used for fishfood.

    Why? Because at its root it is quite obvious that someone -- or some group of someones -- is running an extortion scheme.
    It is a fact that there is well north of a trillion dollars at the Fed in the form of excess reserves. These are funds that the banks can choose to pull and use for repos, lending or whatever -- they just choose not to.
    To the extent that The Fed has encouraged that and, instead of slamming by name the firms that created that spike the last couple of days and nailing them with regulatory sanction they instead launched two repos is outrageous.

    There is no dollar "shortage" when over a trillion worth of excess dollars are being intentionally stuffed into The Fed for the purpose of earning interest from The Fed on same (at 2.1%) when The Fed could have simply whacked that rate to zero to make that game instantly uneconomic.

    Don't believe the flat out bullcrap coming from certain corners of the Internet and other media -- when there's a trillion dollars laying around on purpose there is no shortage of dollars because "someone" wants a measly $50 or $75 billion on an overnight basis.

    https://market-ticker.org/akcs-www?post=236872

    Comments?

    Article from April 23.

    http://www.wsj.com/articles/chinas-b...rs-11556012442
    Last edited by Hi-D; 09-20-2019 at 07:25 PM.

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