Another day, another bit of madness. Jerry Maguire said “SHOW ME THE MONEY!” and the Fed delivered. We’re in 2020 and instead of the Repo Crisis being resolved, it’s worse. The trade deal won’t even be revealed to the public…what?! But don’t worry because stocks go up every single day, boosted up right in the morning thanks to those Fed easy money Repos. Doesn’t anyone see an issue with all of this? Or is this simply just head in the sand time?
We’ve been watching the Repo Crisis unfold. Months into it, we’re still seeing the struggle of this frail and fragile financial system. They still haven’t been able to actually fix the underlying issues but have mentioned on several occasions that they are considering options. Now, there is a rising possibility that the Fed will change its process to extend money directly to hedge funds. You know, the high risk, leveraged institutions that could pop or drop at any minute? Yea, those ones. This is going to be wild.
Fed Adds $82 Billion to Financial Markets – WSJ
www.wsj.com/articles/fed-adds-82-billion-to-financial-markets-11579016506
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www.zerohedge.com/s3/files/inline-images/term%20repo%201.14%20total.jpg?itok=BMWi47Dm
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www.zerohedge.com/s3/files/inline-images/2020-01-14.jpg?itok=Qv3ejUP5
WSJ Markets on Twitter: “Federal Reserve officials are considering lending cash directly to hedge funds through clearinghouses to ease stress in the repo market. But that could be a tough sell for policy makers. t.co/CUlI4o943Q” / Twitter
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Hedge funds could make potential repo market fix hard to stomach – Financial News
www.fnlondon.com/articles/hedge-funds-could-make-potential-repo-market-fix-hard-to-stomach-20200114
September stress in dollar repo markets: passing or structural?
www.bis.org/publ/qtrpdf/r_qt1912v.htm
Getting to the Core of Culture – FEDERAL RESERVE BANK of NEW YORK
www.newyorkfed.org/newsevents/speeches/2020/wil200114
Do the Machines Driving Markets Remember 2000?
Investors Are Counting on Earnings to Rebound in 2020 – WSJ
www.wsj.com/articles/investors-are-counting-on-earnings-to-rebound-in-2020-11578911731
$1,163,090,000,000: Federal Spending Sets Record Through December | CNSNews
Trade war: China, US may not release full details of phase one deal set for signing this week | South China Morning Post
China to ramp up U.S. buys under trade deal, but skeptics question targets – Reuters