Categories

International Analysis. May be the run using the Dollar considering Panic or Greed?

By       -   January 22nd, 2020

International Analysis. May be the run using the Dollar considering Panic or Greed?

What’s happening when you look at the repo market? Rates on repurchase agreements (“repo”) should always be around 2%, based on the fed funds price. Nevertheless they shot as much as over 5% on September 16 and got up to 10% on September 17. Yet banking institutions had been refusing to provide to one another, evidently moving up big earnings to store their cash – just like they did in the housing industry crash and Great Recession of 2008-09.

The Federal Reserve Bank of New York jumped in, increasing its overnight repo operations to $75 billion; and on October 23 it upped the ante to $120 billion in overnight operations and $45 billion in longer-term operations since banks weren’t lending. Read More

Social media & sharing icons powered by UltimatelySocial