Repo market is the story where 👉YOU HAVE TO HAVE THE FACTS 👈It’s telling us something is VERY wrong with the system. The repo market used to function easily with 10 billion in excess reserves, now it requires over 1.5 trillion? Something must be very wrong. Up until now you’ve been told the issues in the repo market have to do with a bank bail out, taxes and regulations, or bad collateral but there could be much more to the story. The entire repo market disaster could have been caused by the treasury department! That’s right. The treasury department has a reserve account with the Fed called the TGA or Treasury General Account, and its roll has changed wildly since the GFC. Some experts are saying the treasury is no responsible for the majority of the cash going into the repo market. If they want to boost the stock market they can through injecting more liquidity into the repo market for hedge funds to use to buy stocks.
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