Economics

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Economics

Postby nanningbob » Thu Dec 26, 2019 11:01 am

Bloomberg December 21, 2019
(Yikes!! Why is the Fed ready to inject almost 1/2 trillion dollars in one day, December 31st, into our banking system??)

Quote:
Since the rate on overnight repo spiked to 10% on Sept. 17 from around 2%, the central bank has been conducting overnight and term repo operations to help rebuild banking reserves, adding $237 billion of liquidity. It’s also prepared to inject up to $490 billion around Dec. 31.

Economics
The Fed Is Entrenched in the Repo Market. How Does It Get Out?
https://www.google.com/amp/s/www.bloomb ... it-get-out
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Economics

Postby nanningbob » Thu Feb 27, 2020 11:10 pm

There she goes!! First big test for stock market. 25000 is a major support. If it breaks there its a long ways down .
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Economics

Postby nanningbob » Thu Apr 02, 2020 6:52 pm

As some of you know I’ve been following this story for 8 months now. The Federal Reserve is not only bailing out USA banks at the tune of up to 1,000,000,000,000.00 thats 1 Trillion dollars available every night. (It started last Sept. at 32 billion.) It is now opening up Repo markets for foreign banks to borrow from the Fed. What a wonderful idea. NOT!!

The Federal Reserve announced Tuesday the opening of a new repurchase agreement, or repo, facility aimed at supplying foreign central banks with US dollars.

The pool will allow monetary authorities abroad to swap US government bonds for dollars. Global demand for the US currency has soared as the coronavirus drives investors to stable assets and forces firms to shore up cash.

https://markets.businessinsider.com/new ... 1029049712
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