@MsMorrisine said:
this is now reserve balances they are targeting. allegedly this is temporary. I think I recall them saying this will last into Q2 next year.
Well, QE 1, 2 and 3 were also temporary. If any one of them did the job, why was the next one necessary?
"According to a report at eVestment, investors pulled $29.37 billion from hedge funds in the third quarter of this year, bringing the total year-to-date to an eyebrow-raising $76.86 billion. That’s more than twice the amount that was withdrawn in all of last year. Hedge funds are highly-leveraged, so $76.86 billion in withdrawals could translate into hundreds of billions of dollars of liquidations in stock and bond markets. The report further notes that this is the “sixth consecutive quarterly outflow.”
"Supporting the thesis that a surge in hedge fund withdrawals at least partly explains the liquidity crisis on Wall Street that has prompted the Fed to restore its money funnel, the Financial Times reported on October 1 that the CFO of a “top-10 US bank” told it that “We have plenty of liquidity. We are just choosing not to lend it out overnight to hedge funds.”
"It’s long past the time for Congressional hearings on the Fed’s newly constructed money spigot to Wall Street as the U.S. taxpayer is the ultimate backstop for the Fed’s $4 trillion and rapidly growing balance sheet."
Worth repeating: "Hedge funds are highly-leveraged, so $76.86 billion in withdrawals could translate into hundreds of billions of dollars of liquidations in stock and bond markets."
@cohodk said:
Wow!!!....that sure is a lot of money!!!
Sure is good that that represents 0.0011% of the value of the US stock and bond market.
Scary times indeed!!
The world is awash with goods and services, the crisis is one of excess choices.. ever go to one of those restaurants and the menu is a book with several pages?
@cohodk said:
Wow!!!....that sure is a lot of money!!!
Sure is good that that represents 0.0011% of the value of the US stock and bond market.
Scary times indeed!!
The world is awash with goods and services, the crisis is one of excess choices.. ever go to one of those restaurants and the menu is a book with several pages?
The real crisis is one of excessive choices to slap on the credit card.
John Mauldin: "In less than 12 months we have seen the Fed raise rates, cut rates, shrink its balance sheet, expand its balance sheet, inject liquidity, withdraw liquidity, and do who knows what else behind the scenes. Either Fed officials are confused or we are at some kind of economic turning point."
If only the FED was half as smart as Coho thinks he is.
the secondary repo market tightened up to the point of about 10%. in turn, the effective federal funds rate rose outside the target range. the fed is putting money into repos to prevent more of the same. as mentioned earlier, someone said they didn't want to lend overnight to some hedge fund.
Tell me again. . . Just why is the FED loaning billions and billions to the banks once again?
>
To enable you.
The fact that the biggest banks need to borrow money tells me all I need to know about their health.
Delusional paranoia susceptible to manipulation theory. Dummy.
Wow, you really do need glasses. If you can't see that banks needing to borrow tens of billions is something to be concerned about, I don't think glasses are going to help.
Those that can see the concern are not "delusional," they're quite justified. No doubt you are one of the bankers getting the money. lol.
@derryb said:
just close your eyes and go with the flow.
Not with you driving the bus!!! You dont know when to hit the brakes or accelerate or swerve or change lanes. Do you have un or underinsured or liability coverage? Folks getting seriously hurt riding on that bus.
This report summarizes the Federal Reserve Board’s framework for assessing the resilience of the U.S. financial system and presents the Board’s current assessment. By publishing this report, the Board intends to promote public understanding and increase transparency and accountability for the Federal Reserve’s views on this topic.
Just because Pam and Russ write it doesnt make it true either. Use you head head derryb.
New money is not being pumped into the system. The banks already had the money in the form of tbills. The Fed is just buying those tbills from the banks. No new money.
Why dont the banks just hold the tbill to maturity? That should be your question.
Comments
It's not necessary. . . in a healthy economy.
Give Me Liberty or Give Me Debt
Well, QE 1, 2 and 3 were also temporary. If any one of them did the job, why was the next one necessary?
Give Me Liberty or Give Me Debt
i guess more temporary than them.
they are low on details with this.
Turns out the liquidity crisis with repos is a result of money gushing out of hedge funds by the tens of billions of dollars. (This is money being pulled from stocks and bonds.)
"According to a report at eVestment, investors pulled $29.37 billion from hedge funds in the third quarter of this year, bringing the total year-to-date to an eyebrow-raising $76.86 billion. That’s more than twice the amount that was withdrawn in all of last year. Hedge funds are highly-leveraged, so $76.86 billion in withdrawals could translate into hundreds of billions of dollars of liquidations in stock and bond markets. The report further notes that this is the “sixth consecutive quarterly outflow.”
"Supporting the thesis that a surge in hedge fund withdrawals at least partly explains the liquidity crisis on Wall Street that has prompted the Fed to restore its money funnel, the Financial Times reported on October 1 that the CFO of a “top-10 US bank” told it that “We have plenty of liquidity. We are just choosing not to lend it out overnight to hedge funds.”
"It’s long past the time for Congressional hearings on the Fed’s newly constructed money spigot to Wall Street as the U.S. taxpayer is the ultimate backstop for the Fed’s $4 trillion and rapidly growing balance sheet."
Worth repeating: "Hedge funds are highly-leveraged, so $76.86 billion in withdrawals could translate into hundreds of billions of dollars of liquidations in stock and bond markets."
Give Me Liberty or Give Me Debt
Wow!!!....that sure is a lot of money!!!
Sure is good that that represents 0.0011% of the value of the US stock and bond market.
Scary times indeed!!
Knowledge is the enemy of fear
Well, appears to have the FED concerned. What they do is waaaaaaaaaay more important/relevant than what you say.
Give Me Liberty or Give Me Debt
The world is awash with goods and services, the crisis is one of excess choices.. ever go to one of those restaurants and the menu is a book with several pages?
Liberty: Parent of Science & Industry
The real crisis is one of excessive choices to slap on the credit card.
Give Me Liberty or Give Me Debt
To derryb, Cinderella is a horror story.
Who needs Stephen King when we have Dr. Seuss?
Knowledge is the enemy of fear
Give Me Liberty or Give Me Debt
So we went from panic to concern. Guess it's a move in the right direction. lol
The whole worlds off its rocker, buy Gold™.
speak for yourself. I have no need to panic, I'm insured.
Give Me Liberty or Give Me Debt
Buncha happy campers we are
Liberty: Parent of Science & Industry
Knowledge is the enemy of fear
Give Me Liberty or Give Me Debt
Reminds me of a movie I watched recently:
i saw that movie, what was the name of it
Give Me Liberty or Give Me Debt
"They Live", and that's
Rowdy Roddy Piper
Liberty: Parent of Science & Industry
Panic!!!!! Lol
https://fred.stlouisfed.org/series/TDSP
Knowledge is the enemy of fear
John Mauldin: "In less than 12 months we have seen the Fed raise rates, cut rates, shrink its balance sheet, expand its balance sheet, inject liquidity, withdraw liquidity, and do who knows what else behind the scenes. Either Fed officials are confused or we are at some kind of economic turning point."
If only the FED was half as smart as Coho thinks he is.
Give Me Liberty or Give Me Debt
No panic from the fed, panic from PM sellers? Absolutely.
The whole worlds off its rocker, buy Gold™.
If only.
Looks like typical navigation of the economic cycle. Probably is confusing for those who drive peddle to the floor in reverse.
Knowledge is the enemy of fear
FED = economic cycles or, some days peanuts, some days shells.
Give Me Liberty or Give Me Debt
Wall Street’s Liquidity Crisis: It’s Not Getting Better
Tell me again. . . Just why is the FED loaning billions and billions to the banks once again?
The fact that the biggest banks need to borrow money tells me all I need to know about their health. Got gold?
Give Me Liberty or Give Me Debt
the secondary repo market tightened up to the point of about 10%. in turn, the effective federal funds rate rose outside the target range. the fed is putting money into repos to prevent more of the same. as mentioned earlier, someone said they didn't want to lend overnight to some hedge fund.
>
To enable you.
Delusional paranoia susceptible to manipulation theory. Dummy.
Knowledge is the enemy of fear
Wow, you really do need glasses. If you can't see that banks needing to borrow tens of billions is something to be concerned about, I don't think glasses are going to help.
Those that can see the concern are not "delusional," they're quite justified. No doubt you are one of the bankers getting the money. lol.
Give Me Liberty or Give Me Debt
You see ghosts.
Boo!!
Knowledge is the enemy of fear
better than seeing unicorns.
Give Me Liberty or Give Me Debt
https://www.sciencealert.com/were-unicorns-real-fossilised-skull-reveals-siberian-date-last
Knowledge is the enemy of fear
just close your eyes and go with the flow.
Give Me Liberty or Give Me Debt
Not with you driving the bus!!! You dont know when to hit the brakes or accelerate or swerve or change lanes. Do you have un or underinsured or liability coverage? Folks getting seriously hurt riding on that bus.
Knowledge is the enemy of fear
fully insured. lol
Give Me Liberty or Give Me Debt
When can we make a claim?
Knowledge is the enemy of fear
probably after you wake up.
Give Me Liberty or Give Me Debt
Its all my fault. Sorry stackers. Insurance claims are on hold until i wake up. Derryb has placed great burden on me.
Knowledge is the enemy of fear
One of my favorites
_
https://youtu.be/c_anYpBqfbc_
Report summarizing the Federal Reserve Board’s framework for assessing the resilience of the U.S. financial system and presenting the Board’s current assessment
https://www.federalreserve.gov/publications/financial-stability-report.htm
This report summarizes the Federal Reserve Board’s framework for assessing the resilience of the U.S. financial system and presents the Board’s current assessment. By publishing this report, the Board intends to promote public understanding and increase transparency and accountability for the Federal Reserve’s views on this topic.
https://www.federalreserve.gov/publications/files/financial-stability-report-20191115.pdf
As of Nov. 20 the FED has added $3 trillion in a period of 63 days.
But everything is fine.
Give Me Liberty or Give Me Debt
I was wondering if the panic continued. My 401K balance is certainly fine, to da moon!
The whole worlds off its rocker, buy Gold™.
$3trillion or $300billion?
So a bank sells a tbill to the Fed. And the Treasury pays off tbill at maturity to the Fed, then the FED has added money to the system?
Lol
The Fed is simply giving a cash advance to some holders of tbills. No new money is entering the system.
The equity markets certainly have moved higher since this repo program began.
Knowledge is the enemy of fear
as for the repo market, these are loans which are either overnight or 14 day collateralized loans.
collateral is exchaanged for cash, then vice versa.
summing the amount of repo loans is misleading.
Correct.
Knowledge is the enemy of fear
the $3 trillion in super cheap loans has not gone to commercial banks to assist the overall economy; the hundreds of billions of dollars each week are going to the Fed’s “primary dealers” which are the trading houses on Wall Street.
Give Me Liberty or Give Me Debt
Just because Pam and Russ write it doesnt make it true either. Use you head head derryb.
New money is not being pumped into the system. The banks already had the money in the form of tbills. The Fed is just buying those tbills from the banks. No new money.
Why dont the banks just hold the tbill to maturity? That should be your question.
Knowledge is the enemy of fear
You miss the point: Why do the banks suddenly need 100's of billions in cash?
There was a horrible reason the last time they needed this much cash.
Give Me Liberty or Give Me Debt
Its ok derryb. You have company
Watch "Sam Darnold is seeing ghosts" on YouTube
https://youtu.be/j9kbruB2KXo
The point....you posted misinformation about $3 trillion being pumped into the markets.
Knowledge is the enemy of fear
https://www.cnbc.com/video/2019/12/05/repo-madness-hits-wall-street.html
https://www.cnbc.com/2019/11/20/the-fed-is-looking-at-a-standing-repo-operation-to-handle-overnight-funding-issues.html