The Fed Has a Dangerous Repo Problem: Here Are the Charts

KW: When you add up all the Fed’s support for the “repo” market since September, it comes to over $6.6 trillion. You’d think that would be more than enough. But it seems the liquidity issues are getting worse, not better. In recent days, the demand for short-term loans from the New York Fed substantially exceeded the supply it made available. The technical term is “oversubscribed.”

Although the Fed won’t make the information publicly available, the ongoing problems suggest that one or more trading houses on Wall Street is having problems.

The Fed also basically said these loans will continue “at least” through April. But they could continue longer. At the going rate, total loans would reach $29 by the middle of the year. That would equal the $29 trillion bailout the Fed handed out between 2007 and 2010.

Fools Paradise? The media are either totally ignorant of the isssue or are not reporting it

 

By Pam Martens and Russ Martens: February 7, 2020 ~ On both days this week that the New York Fed offered its $30 billion in 14-day repo loans to 24

Source: The Fed Has a Dangerous Repo Problem: Here Are the Charts

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