Dec 11, 2019
Welcome to Finance and Fury, The Say What Wednesday Edition
Question from Mark part 2:
Can you explain the repo markets that are going on at the moment? Apparently the banks are loaning money from the Feds at 10% so they have enough liquidity to survive the night/Bank run?
– Last SWW ep for the year – Taking a break – Monday eps still going but no Wednesday or Friday episodes
No surprise that something isn’t right in the financial system – the spikes in the repo rates are a sign of the liquidity crisis occurring – especially as most managers for investments are almost fully invested – not a lot of cash or reserves in place to fund their own operations without the repo market
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