The Fed pumps another $75 billion into financial markets, continuing capital-injection plan

JustAGuy1

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Aug 18, 2019
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  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
I'm watching them like a hawk and saving every dime I can lay hands on. Thank God I am free of debt this time.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
I'm watching them like a hawk and saving every dime I can lay hands on. Thank God I am free of debt this time.

I started investing in silver coins.....being debt free is a great feeling.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
I've been watching this closely since the beginning.

The Fed started unwinding its QE balance sheet and Trump is running a trillion dollar deficit. These two phenomena have caused a liquidity crunch in the repo market.

QE Forever™.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
I've been watching this closely since the beginning.

The Fed started unwinding its QE balance sheet and Trump is running a trillion dollar deficit. These two phenomena have caused a liquidity crunch in the repo market.

QE Forever™.
That deficit is pennies to what the real issues are. We were given warnings. And frankly if LBJ did not go with the Viet Nam War, the Moon Program and the Great Society agendas the debts would not have accrued this high. There were loans taken out and also we had to cut the last tie to the Gold system in 1971 from Bretton woods. From thenthere on we printed money up like there was no tomorrow. Program after program after program was started and/or enhanced. Then the oldest generation retired and social security and medicare had problems. They raise the taxes and it was supposed to last for many more decades then now. But nooooooooo! They are going to raise it on the suckers again. Trump tried or is trying to bring back some manufacturing. Foundation jobs. It is not easy as it took a while to get to this point. Maybe a stock market collapse is needed and some suffering spread throughout the land.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.

continuing capital-injection plan

Strange title, repos don't impact bank capital.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
I've been watching this closely since the beginning.

The Fed started unwinding its QE balance sheet and Trump is running a trillion dollar deficit. These two phenomena have caused a liquidity crunch in the repo market.

QE Forever™.
That deficit is pennies to what the real issues are. We were given warnings. And frankly if LBJ did not go with the Viet Nam War, the Moon Program and the Great Society agendas the debts would not have accrued this high. There were loans taken out and also we had to cut the last tie to the Gold system in 1971 from Bretton woods. From thenthere on we printed money up like there was no tomorrow. Program after program after program was started and/or enhanced. Then the oldest generation retired and social security and medicare had problems. They raise the taxes and it was supposed to last for many more decades then now. But nooooooooo! They are going to raise it on the suckers again. Trump tried or is trying to bring back some manufacturing. Foundation jobs. It is not easy as it took a while to get to this point. Maybe a stock market collapse is needed and some suffering spread throughout the land.

There is already suffering spread throughout the land. It's about time the super rich had a chance to share in some of that suffering.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.

continuing capital-injection plan

Strange title, repos don't impact bank capital.
Actually, they do when the Fed does it.

The Fed is printing money and providing it to market makers.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.

continuing capital-injection plan

Strange title, repos don't impact bank capital.
Actually, they do when the Fed does it.


The Fed is printing money and providing it to market makers.

Actually, they do when the Fed does it.

Actually, it doesn't.

The Fed is printing money and providing it to market makers.

The Fed is printing money and loaning it overnight in exchange for, usually, US Treasuries..
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
Yes something nefarious is afoot, but we won’t know until it’s too late.

Some think the Fed is bailing out Deutsche Bank.

The Repo Loan Crisis, Dead Bankers, and Deutsche Bank: Timeline of Events
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
I've been watching this closely since the beginning.

The Fed started unwinding its QE balance sheet and Trump is running a trillion dollar deficit. These two phenomena have caused a liquidity crunch in the repo market.

QE Forever™.
That deficit is pennies to what the real issues are. We were given warnings. And frankly if LBJ did not go with the Viet Nam War, the Moon Program and the Great Society agendas the debts would not have accrued this high. There were loans taken out and also we had to cut the last tie to the Gold system in 1971 from Bretton woods. From thenthere on we printed money up like there was no tomorrow. Program after program after program was started and/or enhanced. Then the oldest generation retired and social security and medicare had problems. They raise the taxes and it was supposed to last for many more decades then now. But nooooooooo! They are going to raise it on the suckers again. Trump tried or is trying to bring back some manufacturing. Foundation jobs. It is not easy as it took a while to get to this point. Maybe a stock market collapse is needed and some suffering spread throughout the land.

There is already suffering spread throughout the land. It's about time the super rich had a chance to share in some of that suffering.
Without "the rich" we would be just another shithole country struggling to survive.

You people are so narrow minded it's mind boggling
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
They just overshot a little, while unwinding their balance sheet since the Trump Boom took hold.

fredgraph.png


They overshot a little on the rate hikes, had to give a few back. Overshot a little on rolling assets off their balance sheet and have had to take a little back.

Further, these are sterilized transfers, they are exchanging full cash value for the performing notes they are purchasing.

Also, we always knew that our reduction in net oil exports would begin to dry up global liquidity.

https%3A%2F%2Fblogs-images.forbes.com%2Frrapier%2Ffiles%2F2018%2F03%2FNet-Petroleum-Exports-1200x484.jpg


After the collapse of the Bretton Woods gold standard in the early 1970s, the United States struck a deal with Saudi Arabia to standardize oil prices in dollar terms. Through this deal, the petrodollar system was born.

The petrodollar system provides the United States’ financial markets with a source of liquidity and foreign capital inflows through petrodollar "recycling."

The petrodollar system created surpluses of U.S. dollar reserves for oil-producing countries, which need to be "recycled", invested in U.S. dollar-denominated assets. These recycled dollars created liquidity in the financial markets.

As recycled petrodollars dry up, it's drained the liquidity of American capital markets, which the Fed is picking up, keeping our borrowing costs low and US consumer demand strong!
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
Yes something nefarious is afoot, but we won’t know until it’s too late.

Some think the Fed is bailing out Deutsche Bank.

The Repo Loan Crisis, Dead Bankers, and Deutsche Bank: Timeline of Events

That website is hilarious!!

No one can bail out Deutsche, let alone the Fed with an overnight repo.

To meet their capital requirements, they have to hold an insane amount of cash and Eurozone government debt which, in many cases, has a negative yield.

They can't take enough risk to make a decent profit. And it's too late in the cycle for them to try, even if the German government would let them.

Dead bank walking.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
They just overshot a little, while unwinding their balance sheet since the Trump Boom took hold.

fredgraph.png


They overshot a little on the rate hikes, had to give a few back. Overshot a little on rolling assets off their balance sheet and have had to take a little back.

Further, these are sterilized transfers, they are exchanging full cash value for the performing notes they are purchasing.

Also, we always knew that our reduction in net oil exports would begin to dry up global liquidity.

https%3A%2F%2Fblogs-images.forbes.com%2Frrapier%2Ffiles%2F2018%2F03%2FNet-Petroleum-Exports-1200x484.jpg


After the collapse of the Bretton Woods gold standard in the early 1970s, the United States struck a deal with Saudi Arabia to standardize oil prices in dollar terms. Through this deal, the petrodollar system was born.

The petrodollar system provides the United States’ financial markets with a source of liquidity and foreign capital inflows through petrodollar "recycling."

The petrodollar system created surpluses of U.S. dollar reserves for oil-producing countries, which need to be "recycled", invested in U.S. dollar-denominated assets. These recycled dollars created liquidity in the financial markets.

As recycled petrodollars dry up, it's drained the liquidity of American capital markets, which the Fed is nicely picking up, keeping our borrowing costs nice and low, increasing the dollars in American Consumer pockets.


Further, these are sterilized transfers, they are exchanging full cash value for the performing notes they are purchasing.

Not purchases. The Fed gets the Treasuries, usually, the banks get the reserves.
The next day, the repo is reversed.
 
"
  • The Federal Reserve on Wednesday sold another $75 billion in market repurchase agreements, or repos, in a continued effort to calm money markets and bring interest rates within its intended range.
  • The round was oversubscribed, as banks requested nearly $92 billion in overnight repos, signaling strong demand for the asset.
  • The bank began a streak of repo offerings last week, marking the first time such assets were sold since the 2008 financial crisis. The central bank said the offerings would continue through early October."
The Fed pumps another $75 billion into financial markets, continuing capital-injection plan | Markets Insider

Everybody better start paying attention, it isn't all "sunshine and lollipops" out there.
They just overshot a little, while unwinding their balance sheet since the Trump Boom took hold.

fredgraph.png


They overshot a little on the rate hikes, had to give a few back. Overshot a little on rolling assets off their balance sheet and have had to take a little back.

Further, these are sterilized transfers, they are exchanging full cash value for the performing notes they are purchasing.

Also, we always knew that our reduction in net oil exports would begin to dry up global liquidity.

https%3A%2F%2Fblogs-images.forbes.com%2Frrapier%2Ffiles%2F2018%2F03%2FNet-Petroleum-Exports-1200x484.jpg


After the collapse of the Bretton Woods gold standard in the early 1970s, the United States struck a deal with Saudi Arabia to standardize oil prices in dollar terms. Through this deal, the petrodollar system was born.

The petrodollar system provides the United States’ financial markets with a source of liquidity and foreign capital inflows through petrodollar "recycling."

The petrodollar system created surpluses of U.S. dollar reserves for oil-producing countries, which need to be "recycled", invested in U.S. dollar-denominated assets. These recycled dollars created liquidity in the financial markets.

As recycled petrodollars dry up, it's drained the liquidity of American capital markets, which the Fed is nicely picking up, keeping our borrowing costs nice and low, increasing the dollars in American Consumer pockets.


Further, these are sterilized transfers, they are exchanging full cash value for the performing notes they are purchasing.

Not purchases. The Fed gets the Treasuries, usually, the banks get the reserves.
The next day, the repo is reversed.
The Fed exchanges cash for notes, correct?

It looks to me like they are doing a pretty good job keeping the effective funds rate near their target rate:

fredgraph.png
 

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