WallStForMainSt: Repo Madness: A New & Large Permanent Repo Facility Soon Followed By QE?
A new & large permanent repo facility is already being discussed by the Fed at Fed meetings according to the June & July Fed minutes.
This is truly #RepoMadness!
Former Fed & Primary Dealer Insiders on Dollar Repo Madness https://www.realvision.com/tv/shows/interviews/videos/former-fed-insiders-on-dollar-repo-madness
Which Banks Were Behind The "Repocalypse" Funding Squeeze? https://www.zerohedge.com/markets/which-banks-were-behind-repocalypse-funding-squeeze
The St. Louis Fed actually correctly predicted these large problems in the overnight repo market would happen back in March of 2019 and they wrote a research paper arguing for the establishment of a permanent repo facility called, Why the Fed Should Create a Standing Repo Facility https://www.stlouisfed.org/on-the-economy/2019/march/why-fed-create-standing-repo-facility
Former Minneapolis Federal Reserve Bank President also worried about the repo market and wrote a Bloomberg Op-Ed this week about it: https://www.bloomberg.com/amp/opinion/articles/2019-09-25/why-i-m-worried-about-the-repo-market
Fed's repo market troubles suggest something "very wrong" with the financial system https://www.axios.com/federal-reserve-repo-market-financial-system-f7811483-f2c6-4313-996a-6a4ba31d9acf.html
The Fed will need to grow its balance sheet 'permanently,' Morgan Stanley says https://www.cnbc.com/amp/2019/09/26/morgan-stanley-fed-repo-market-requires-bigger-balance-sheet.html
The NY Fed's rescue is working. But it hasn't fixed the market https://www.msn.com/en-us/money/markets/the-ny-feds-rescue-is-working-but-it-hasnt-fixed-the-market/ar-AAHSuAe
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