There could be other one-off factors triggering this spike, such as an oil bet that went bad after the attack on Saudi Arabia
Did the Fed's intervention work?
Rates dropped back following the Fed's action, and so far stock markets and other parts of the system don't appear to have been affected.
But analysts warn that the turmoil is likely continue, saying the end-of-quarter rush to square up company balance sheets could cause more stress.
"Starting next week, NY Fed will do an overnight $75BN repo every day and 3 $30BN Term repos as it expects continued overallotment."
There has been problems from the moment the Fed raised the rates and started QT.
At first the excess reserves that the banks held at the Fed started to decline. Then the Fed started to lose control of the Effective Federal Funds Rate (EFFR) and the Interest On Excess Reserves (IOER). And now they lost control of the Repo.
Something is broken.
Yoshua wrote:"Starting next week, NY Fed will do an overnight $75BN repo every day and 3 $30BN Term repos as it expects continued overallotment."
Armageddon wrote:No matter what they call it, QE is back. The Fed's balance sheet jumped by $75 billion to $3.845 trillion in the week ended 9/18. This is just the beginning, as whatever the Fed decides to call QE4, it will be much larger and more destructive than QEs 1,2, & 3 combined. Buy Gold!
However, in a sign a cash crunch could be easing, demand for liquidity on Friday did not significantly exceed the amount offered, as it had on two prior days.
Federal Reserve Chair Jerome Powell this week downplayed concerns about the money market's cash crunch, saying it was not a sign of problems in the wider economy or a concern for monetary policy.
Economists say an array of conditions converged to dry up liquidity in the banking system -- including quarterly corporate tax payments and a surge in government debt sold to investors, which drained cash out of banks.
Why not include a link for such quotes? Yes, I searched and found it, but why should everyone need to do that, select X stories to check, etc?
FED is continuing massive capital injections into the financial sector to prevent another credit freeze
Armageddon wrote: The end of the fiat system is approaching
EnergyUnlimited wrote:Armageddon wrote: The end of the fiat system is approaching
If dollar is gone then yuan or SDR-s will become to be new reserve fiat.
Fiat is more resilient than you think.
They will lie their way through.
Fiddle here and there, launch few wars big enough to scare the sheeple, maybe even drop a nuke or two, then calm down everything and with big drama launch a heroic global program to "rebuild society"... while peddling a new fiat system.
EnergyUnlimited wrote:If dollar is gone then yuan or SDR-s will become to be new reserve fiat.
Fiat is more resilient than you think.
They will lie their way through.
Fiddle here and there, launch few wars big enough to scare the sheeple, maybe even drop a nuke or two, then calm down everything and with big drama launch a heroic global program to "rebuild society"... while peddling a new fiat system.
The_Toecutter wrote:EnergyUnlimited wrote:
If anything, it seems as if the fiat paper currency is engineered for collapse so that an electronic and completely trackable system of currency can replace it. The governments of the world do not like anonymous transactions and have been implementing measures to make them difficult and/or impossible depending upon the size/type of transaction. An electronic currency would be the next logical step in the regime of ever escalating control over the individual, and as a bonus, one's access to their stored currency could then be shut off at the whim of law enforcement or some bureaucrat for any reason or no reason at all.
Goldman Sachs Has Just Issued An Ominous Warning About Stock Market Chaos In October
Stock volatility has been 25% higher in October on average ever since 1928, according to Goldman equity derivatives strategist John Marshall.
Big price swings have been seen in each major stock benchmark and sector over the past 30 years, with tech and health care being the most volatile groups, Goldman said.
“We believe high October volatility is more than just a coincidence. We believe it is a critical period for many investors and companies that manage performance to calendar year-end,” Marshall said.
Armageddon wrote:Doubt that. Trump will announce a partial China deal and roll back some of the tariffs if that happens. No way Trump will let the markets crash prior to the election.
If Argentina’s market could drop by half when Macri lost the primary, why can’t ours drop 20 or 30% if Warren is the candidate?
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