We have a liquidity issue. Banks will soon lose trust in one another, and shit will freeze up. Remember what happened in 2008? JPMorgan CEO: “US is heading into something is worse than recession”

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This is a chart of the US overnight Repo Rate. It should scare you.

The overnight rate is the interest rate at which a depository institution (generally banks) lends or borrows funds from another depository institution in the overnight market. In many countries, the overnight rate is the interest rate the central bank sets to target monetary policy.

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It’s a liquidity problem. Soon banks won’t trust other banks to repay, and then shit freezes up. It happened before, remember?

h/t CaptainMorgan

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