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WHAT IS THE REPO MARKET? The casino for Banks?
They are quoting on line that over 1 trillion dollars of Federal Reserve stimulus has been thrown into the roulette wheel by the end of December starting from September this year? Really looks like the dam is bursting soon on the fiat currency game.
serf
https://williambowlesnet.files.wordpress.com/2019/12/the-fed-santa-pdf.pdf
WHAT IS THE REPO MARKET? Bloomberg answers: It?s where piles of cash and pools of securities meet, resulting in more than$3trillionin debt being financed each day. Repo is short for repurchase agreements, transactions that amount to collateralized short-term loans, often made overnight. Repo deals let big investors --such as mutual funds --make money by briefly lending cash that might otherwise sit idle, and enable banks and broker-dealers to get needed financing by loaning out securities they hold in return. A healthy repo market is more than the world?s biggest pawn shop: It helps a wide range of other transactions go more smoothly--including trading in the over$16trillionU.S. Treasury market.https://www.bloomberg.com/news/articles/2019-09-19/the-repo-market-s-a-mess-what-s-the-repo-market-quicktakeInother words it is the interface between banks with temporary surplus cash meeting financial institutions that are short of cash on a daily or weekly basis.Cash is swapped in return for highly rated collateral (though it must be said this collateral may have been sworn to more than one lender!).Brian Green,12thDecember 2019.
This is the reason for the stresses in the money markets.Banks are running out of money because the money coming in is receding,while the money (credit)going out to finance the bubble,is rising. The pundits who reckon the banks can simply print money or issue credit, have been shown to be wrong. Banks centralize, store and circulate value,but they do not create it.
serf
https://williambowlesnet.files.wordpress.com/2019/12/the-fed-santa-pdf.pdf
WHAT IS THE REPO MARKET? Bloomberg answers: It?s where piles of cash and pools of securities meet, resulting in more than$3trillionin debt being financed each day. Repo is short for repurchase agreements, transactions that amount to collateralized short-term loans, often made overnight. Repo deals let big investors --such as mutual funds --make money by briefly lending cash that might otherwise sit idle, and enable banks and broker-dealers to get needed financing by loaning out securities they hold in return. A healthy repo market is more than the world?s biggest pawn shop: It helps a wide range of other transactions go more smoothly--including trading in the over$16trillionU.S. Treasury market.https://www.bloomberg.com/news/articles/2019-09-19/the-repo-market-s-a-mess-what-s-the-repo-market-quicktakeInother words it is the interface between banks with temporary surplus cash meeting financial institutions that are short of cash on a daily or weekly basis.Cash is swapped in return for highly rated collateral (though it must be said this collateral may have been sworn to more than one lender!).Brian Green,12thDecember 2019.
This is the reason for the stresses in the money markets.Banks are running out of money because the money coming in is receding,while the money (credit)going out to finance the bubble,is rising. The pundits who reckon the banks can simply print money or issue credit, have been shown to be wrong. Banks centralize, store and circulate value,but they do not create it.