Fed loses control: $400 billion already given out, $75 billion a day has now gone to $100+ billion a day

by AC

This repo overnight loan system by the Federal reserve to prop up banks is slated to be on going for a month! One night the requests were $190 billion. As the economy slides downward this liquidity problem is only going to get worse. This is what preceded the 2008 “Great Recession.”

The Fed has yet to admit it but the panic has set in. The liquidity is drying up. THe moment we have been waiting for has come. Initially they said this was very temporary. Just a few days and they’re back to normal. That didn’t happen. While this might not become a catalyst to the next financial crisis, it certainly highlights what I’ve talked about at length. Liquidity is everything and without central banks, the financial markets would collapse. Not good.

 

The Fed pumps another $110 billion into markets as investor demand surges | Markets Insider

markets.businessinsider.com/news/stocks/fed-repo-injects-110-billion-into-market-amid-surging-demand-2019-9-1028556859

Repo and Reverse Repo Operations – Federal Reserve Bank of New York

apps.newyorkfed.org/markets/autorates/tomo-results-display?SHOWMORE=TRUE&startDate=01/01/2000&enddate=01/01/2000

Assets: Total Assets: Total Assets (Less Eliminations From Consolidation): Wednesday Level (WALCL) | FRED | St. Louis Fed

fred.stlouisfed.org/series/WALCL

Morgan Stanley: Fed repo market requires bigger balance sheet

www.cnbc.com/2019/09/26/morgan-stanley-fed-repo-market-requires-bigger-balance-sheet.html

The Fed has pumped hundreds of billions into the market through ‘repo’ offerings. Here’s what they are, and why they’re back for the first time since the financial crisis. | Markets Insider

markets.businessinsider.com/news/stocks/fed-repo-operations-explained-what-they-are-and-used-for-2019-9-1028557683#what-are-repos-1

EFO80C2WwAAqq8E.png (680×519)

realinvestmentadvice.com/wp-content/uploads/2019/09/EFO80C2WwAAqq8E.png

SP500-Buyback-Index-vs-TR-Index-092419.png (964×538)

realinvestmentadvice.com/wp-content/uploads/2019/09/SP500-Buyback-Index-vs-TR-Index-092419.png

SP500-Buyback-Index-Vs-TR-YOY-PctChg-092419.png (975×539)

realinvestmentadvice.com/wp-content/uploads/2019/09/SP500-Buyback-Index-Vs-TR-YOY-PctChg-092419.png

IT companies are on pace to spend the most on stock buybacks in 2019 – Axios

www.axios.com/stock-buybacks-2019-tech-sector-f75e4835-4934-442d-b13f-091b4b881c11.html

Corporate-Debt-GDP-092419.png (842×441)

realinvestmentadvice.com/wp-content/uploads/2019/09/Corporate-Debt-GDP-092419.png

2019-09-25_18-09-21.png (613×439)

www.zerohedge.com/s3/files/inline-images/2019-09-25_18-09-21.png?itok=YYPUAzV7

WeWork’s Cash Clock Is Running Down Quickly – BNN Bloomberg

www.bnnbloomberg.ca/wework-s-cash-clock-is-running-down-quickly-1.1322271

WeWork’s Adam Neumann’s private jet grounded, up for sale | Fox Business

www.foxbusiness.com/business-leaders/wework-to-sell-60-million-jet-in-wake-of-failed-ipo

peloton-infographic-FNL.png (800×6552)

grizzle.com/wp-content/uploads/2019/09/peloton-infographic-FNL.png

Lockheed to begin supplying F-16 wings from Indian plant in 2020 – Reuters

www.reuters.com/article/us-lockheed-india/lockheed-to-begin-supplying-f-16-wings-from-indian-plant-in-2020-idUSKBN1WB1W5?feedType=RSS&feedName=businessNews

Income inequality in America the highest it’s been since Census started tracking it, data show – StamfordAdvocate

www.stamfordadvocate.com/business/article/Income-inequality-in-America-the-highest-it-s-14469954.php

Census: Inequality grew, including in heartland states

apnews.com/bfa51032ee27470c9f908914328eea99

Millennials continue to flee big cities for the suburbs | Fox Business

www.foxbusiness.com/economy/millennials-continue-to-flee-big-cities-for-the-suburbs