Tuesday , November 5 2024
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Fed to establish permanent standing repo facility

Summary:
I think that the ECB and BOE already effectively have this… those systems also have much lower and less volatile interest rates on their government securities… hmmmmm… ?Couple comedic sidebars, this is funny in here:  “The Fed began intervening in money markets in September of 2019 when reserves in the banking system fell too low, leading to a spike in short-term borrowing rates.”Oh yeah like the system reserve balances just somehow “fell too low!” like they somehow just evolved from the apes by random chance to a low level… yeah ok LOL..Then this too right behind it:  “Reserves are elevated thanks in part to…  a rapid drawdown in the government’s store of funds at the Fed.”LOL how did the funds get in the government account in the first place?  Flew in by random chance mutation from Mars

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I think that the ECB and BOE already effectively have this… those systems also have much lower and less volatile interest rates on their government securities… hmmmmm… ?


Couple comedic sidebars, this is funny in here:  “The Fed began intervening in money markets in September of 2019 when reserves in the banking system fell too low, leading to a spike in short-term borrowing rates.”

Oh yeah like the system reserve balances just somehow “fell too low!” like they somehow just evolved from the apes by random chance to a low level… yeah ok LOL..

Then this too right behind it:  “Reserves are elevated thanks in part to…  a rapid drawdown in the government’s store of funds at the Fed.”

LOL how did the funds get in the government account in the first place?  Flew in by random chance mutation from Mars or something?

It never ends… Darwin…




Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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