The Fed to Dump $75 Billion PER DAY Into Repo Market Until Oct. 10

I know this bitch is dumb, but is there any truth to this? I don't understand how this Repo market shit works. Can anyone explain?

youtube.com/watch?v=lJEHuzfIotA

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youtube.com/watch?v=PTUY16CkS-k
youtube.com/watch?v=KCBCVVYaOsY
zerohedge.com/news/2019-05-22/nenner-if-deutsche-breaks-640-world-trouble
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youtube.com/watch?v=PTUY16CkS-k

Yeah, its happening.
youtube.com/watch?v=KCBCVVYaOsY

>I know this bitch is dumb
No, you're dumb, son.

She literally explains it in the video. It's short term lending for banks by banks when they're short on cash, for a 2% ANNUAL interest rate. Basically, what's happening is that the banks don't have the money to lend eachother, and the fed is pressing money into the system to keep the banks afloat. Reading between the lines, what's happening is that banks are "lending" from the fed so that they don't cause a recession by initiating a bank run due to lack of money in banks.

This cute danish woman would not suck your tendie fingers clean, you're just not smarts enough.

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Retard, the repo market is like a pawn shop for money.

Banks lend each other cash in exchange for Treasury bonds over night.

Then in the morning the bank pays back the money and ~ 2% interest compounded annually. So in real terms it's like 0.02/365 or something really small.

It's the same 75 billion every day being traded back and forth.

Look at the fed documents explaining everything, it's just an overnight loan. Not new money being pumped into the system every day.

It works as following: amerishits print unlimited amounts of useless green paper and give it to their jew masters and the jew masters use jewish magic to make the whole world treat the green rag as money.
For this service, americrapss are allowed to keep as much of the paper as they need, kind like an ice cream factory worker can eat as much ice cream as he wants for as long as he retains his position.

Unfortunately, amerimutts are not as smart as the ice cream worker, so they take the money and immediately spend it all on the jews as well.

>Unfortunately, amerimutts are not as smart as the ice cream worker, so they take the money and immediately spend it all on the jews as well.
so true it hurts to read.

Does this mean the economy will crash 1930s style soon?

it's 2008 over again.
but the Big Short guy said this time there is less leverage, so allegedly the US financial system is safer.

So when do we crash? In 18 months ish because the yield curve shit? Will it be a smaller recession?

Go back to getting grenaded, Swede cuck.

>So when do we crash?
when something significant triggers it.
Hard Brexit probably.
some serious China-USA clash.

But central banks will be more proactive and will lend whatever it takes.

There are 5 times as much junk bonds now vs 2008. This crash will be different but worse.

They said on the news and on Biz that the money they are lending, they're getting less back thank what they lended

Also, Deutsch Bank or Commerzbank might declare bankruptcy at some point soon.

There are negative rates in Europe.
But the US repo market definitely had positive interest rate around 2% ... before this new crisis last week.

some guy says that Index Funds became bullshit, because people stopped analyzing them and this became the second wave of stupid herd money buying subprime shit packaged as AAA.

Commerzbank owns mBank in Poland and says it wants to sell it.
maybe it all starts in Poland.
EU Justice Tribunal will announce a decision on 3.10.2019 which probably will cause losses to several banks in Poland.

this

Thats it. I'm not spending another dime on jew movies and I'm cancelling Kikeflix.

I would dump mad loads into her.

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somebody test my logic:
1. banks were using short-term borrowing to finance their assets
2. somebody pulled a lot of money from the market
3. banks can't find enough lenders to borrow
4. CB steps in as emergency lender
technically this is not a fault with the banks, it's just that there is less of a certain resource, but the CB can step in and create it out of air.
my wild guess is that maybe China is pulling their money out. I've seen news that they are selling stuff in other places.
> CHINESE FIRMS DUMP $40 BILLION IN GLOBAL ASSETS, TURN NET SELLER FOR FIRST TIME IN DECADES

Let's suck each other's cocks for the sake of the stock market.

No. The banks usually lend to each other overnight, but starting late last week, they stopped even when the overnight rate shot up to 10%. The Fed had to step in when the private banks wouldn't. Nobody who's talking seems to give a good reason why, either. Which means that the real reason is a little frightening.

what race is this

Half Asian, Half Danish.

Danish. Iversen is danish.

That's not at all what's happening, genius. That's normal. What's happening is they're going to the discount window, aka the fed. No banker in their right mind fucking does that, unless they're out of options.
This is QE lite via POMO. That's a really fucking bad sign at what should essentially be the top of a market.
What this means is that AT LEAST one major bank is straight up insolvent, and they're floating it hoping that a better solution will come along. It won't.
tl;dr,
Tits up by Christmas. Buy bullets.

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This guy gets it. Right now there are only theories as to why. The most obvious one to me is DB offering absolute shit as collateral because they're tits up and no one is willing to admit it, because of what that means. What? Like 13 trillion in derivatives exposure?

If it's anything like 2007-2008, what it means is the banks know shit is up and are desperately seeking to unload all their "assets" while they are still closish to their book value. The Fed is helping to forestall the collapse just long enough for as many of the (((bankers))) to get out the door as possible. That's my guess.

Why is this being slid? Every fucking user here needs to be aware of this and get their ducks in a row. This is your warning before we get tossed into freefall. If you're smart, you can still thrive.

No American cares until they miss a meal, sadly. The culling will come, and it will be brutal. It would have been better had it happened in 2008, but what's done is done.

DB stock is currently above $7.75. If it goes below $6.50 the debt to value ratio collapses the bank. There has to be some behind the scenes shit going on because a few days ago it was worth less than $7.00 per share.

She looks like Roaming Millennial.

Money is fake and gay.
Kikes are terrified their imaginary monopoly money will lose some zeroes.

Iran is already selling Oil in yuan. China, Russia, Iran and others are already consolidating. It's only a matter of time.

>anything like 2007-2008
Most likely on the right track. It will be considerably worse, though. We learned some shitty lessons from the subprime loans and effectively rolled up cell phone payment plans in the same way we did those. The cracks have just propagated deeper and deeper into the bedrock of our financial institutions.
Not only that, but there are no more safety nets. The fed did as much QE as can be managed for the foreseeable future. What we are seeing now, QE lite, is the absolute last ditch, plan z kind of manipulation that can be done.
It will hold for a very small amount of time. Any event that upsets the apple cart will sink us.

>kikes are terrified
You should be too, retard. Them losing some liquidity means you starve. Or catch a bullet. Or die from otherwise preventable disease, while they laugh all the fucking way back to their ethnostate money bags jingling all the way.

hard to say how long they can keep it going. i think a second housing crash is likely.

or it's just money moving to the sidelines to wait.
Liquidity is never there for an emergency. It always pulls away in fear.

Any chance the “deep state” is orchestrating this to bring down Trump?

cATAPULT PLAGUE CORPSES OVER THEIR WALLS.

:(

Not necessarily that they don't have the money; it's that no one trusts anyone else to pay it back. In some ways that's even more ominous. Can't trust a $1t asset back to pay back an overnight loan? WTF is going on that causes so much short-term risk?

>a few days ago
It was longer than that, I bought the bottom at 6.80. the 6.50 figure is mostly made up, they're basically insolvent as they sit.
Should have taken the opportunity, though. I made an easy 2 grand.
It's way more than Trump. This has been coming to bite us since 2008. It could be a friend benefit of crashing it, but there's a lot of chaos involved in that play that could not be predicted. It's unlikely to be a direct plan.

Shit. Why arent the markets going crazy and this is not on the news? What the shit? The economy will crash?

That makes sense, nugge. trouble is a foot. Everyone is waiting for the recession.

>this is not on the news?
And by this I mean major news.

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>while they laugh all the fucking way back to their ethnostate money bags jingling all the way

What money?
It's fucking fake.
It's ink on paper that only has value as long as they can collect the interest.

Keep at it user.
Eventually you'll understand.

Long story short, the stock market has decoupled from the real economy, because we're still trying to fake continual growth.

Dunno if you're old enough, but I am to remember 2008. The summer was shitty - but all the news on that front went into gas prices which were well over $4.00/barrel. Gold was skyrocketing, but life went on totally as normal. Then one day (9/15/2008) I went into Con Law class, and the professor asked us how we liked owning all the banks? Suckers that we were, we thought we (taxpayers) would get an equity share for the money we gave them. Silly, silly us...

$4/gallon, not barrel.

I think this proves you're dumb.

Throw in the division between the population, breakdown of any trust of the state, people robbing each other for a can of food. This one can be the one we don’t recover from

It's a convenience that the fed offers because they made Banks stop offering it because fatcats bad something something.

This doesn't make any sense.
>I'm low on cash so I'll take a huge loan that I have to pay back the next day along with some interest.
You'd end up with even less money than the day before you needed the loan. Someone's profitting off this bs interest scheme.

They are keeping interest rates artificially low in order to make credit cheap and easy for banks and businesses. The consumer is only harmed.
Well you do get slightly better rates on home and auto loans, but fiat is a scam and the Federal reserve is a malicious scam.

Bump

She is not taking into account that they are currently prep'ing for a war with Iran.

true?

reply

>Understands complex macro and micro economics
>still can't figure out how to properly reply to a post
ok, bud.
Look, the uber rich get advanced notice of these things, and start shifting their portfolios to avoid the storm. That "ink on paper" is traded for real assets and stores of value, before the goyim catch on. They have the freedom to turn monopoly money into real assets.
They normally let their money turn into more money, aka transfer it to just "ink on paper" as you said.
Then when the fat lady is winding up to belt out her song, they use the funny money to buy real money.
That's as simple as I can make this for you.

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post on Jow Forums

Thanks. I usually ask questions and rarely give an opinion. Learned a little that way.

A couple of kikes at Goldman Sachs Were talking up "Peak Oil" and started speculating on $360/barrel.
The smarmy fucks were licking there lips and doing the sunday news circuits selling the lie. Media kikes helped push the narrative.
Wall St. responded by buying Oil at higher and higher prices, thinking they were getting a bargain.
These shortsighted parasites couldn't understand that their speculation was cutting profits and production, and suppressing demand.
That summer travel season was when the "staycation" came into being.

These fucking yid morons have the foresight of goddamn niggers where money is concerned.

The interest is minimal, and in the long run, it allows them to make more money. It diminishes the amount of liquid assets a bank has to keep on hand, and therefore increases the amount they can turn around into debt/loans, which makes them more money than anything they sit on.
On the daily, you may or may not be negative. You have 'gauranteed' revenue in the form of debts being repaid that are insured via credibility of the lendee, which you can leverage to cover those short term negatives for long term gains.

Jow Forums is nothing but a faggot circle jerk to BitCoin.

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>stores of value
You still don't get it.

Oh ok I see now thanks for replying

I give bump for interesting real news instead of autistic potato child.

Thats the thing...
>the banks have no money
The total amount of actual money in the US is about 3 trillion USD
>there is 90 trillion dollars in CREDIT in circulation

Thanks JFK... you tried your hardest

I am not saying it's all ok. It's not OK

But it's NOT QE because they have to pay back the money in whole the next day with interest. QE was these forms dumping their dog shit investments and having the fed buy them so that they could go gamble more.

There are two reasons why the interest rate would shoot up over night, either no one has any money to lend because they are all suddenly stupid. Or someone is about to go Lehman and no one knows who it is, so you get a Mexican standoff where no one is willing to Trade cash for security's.

Pundnts are saying that it's because corporations were withdrawing cash for paying taxes. So there was less on hand, bullshit they forecast that shit perfectly.

Then the fed is saying that the market just is just running low on cash, needs more liquidity. Explain to me how lending out cash for a night and then taking it all back plus Interest the next day is going to increase the cash supply? Bullshit

One or more of the banks is rotten, bad corporate debt, bad mortgage backed security's, derivative exposure... Whatever.

If we are Lucky the other Banks are taking out credit default swaps on the bad one and going to the fed to ask for money in order to starve the bad firm of liquidity.
No liquidity = bankruptcy
In this scenario, the damage is limited and the situation looks worse than it actually is.

Jow Forums doesn't even know what the info in OP means. post it on Jow Forums

Inb4 coomer

Bailing out greedy kikes who regularly tank the economy for massive personal gain and yet me a hard working slap borrowed money at a low rates after 2008 now carrying a $100000 in credit debt most of it over 15% interest rates can go bankrupt and lose everything and up in the streets after working like a slave 12 hours A-day for the last 30 years fok off and drop dead

Then fucking explain it to me, retard. As long as there are people, there will be some form of economy, and certain goods, aka stores of value, will have value. Steel. Water. Grain. Fuel.
Are you sincerely implying that these things, which kikes convert their monopoly money into during times of stress, have no value?
Be clear.

lol

>tfw no danish qt gf to lick tendies and weiner

No problem. Understanding the way the economy works now essentially requires you to turn everything you understand about money to be the reverse, if it helps conceptualize it better.
Basically, right now, debt=money/buying power and assets/cash=waste. In times of stress, it flips back to logical world, but with the way it's set up now, no bank wants to have money on hand.
They need to get rid of it, as a loan, to a person or corporation. That guarantees money in the future, which can then be turned into more debt. You just keep stacking it, and you've got more money from nothing.
Until someone doesn't pay. Or more specifically, a lot of people.

There isn't a single major bank that could fail without the rest of them following suit. We almost got than in 2008 and rather than fix the problem, they all decided to ratchet it up to 11. If one of them is failing - and based on the data, it looks possible - nothing good can happen. The trust game has gone on too long. We can't afford the Boomers' retirement. We can't afford our current level of consumption. Eventually the hard economic and physical realities come into contact with the fake and gay banking world, and reality ALWAYS wins in the end. I don't know when it will happen, could be this year, could be next, could be five years from now. But I doubt we have 10 years left of this.

Here's a chart of DB. It was down 2.5% today.

zerohedge.com/news/2019-05-22/nenner-if-deutsche-breaks-640-world-trouble

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just buy more money poorfag

Oops. Here's the chart.

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>It's not QE
It is, though. The scenario you laid out would be accurate for TOMO correction of the repo markets. But this is now looking more permanent. If it goes beyond a month, we're most likely fucked. I'm acting on it becoming a POMO. I think others should as well, but that's up to you.

All money in existence was borrowed into existence
Either by the government or by the citizens
There's a payment due every month for every dollar in existence
Nowince everyone's leveraged up to their eyeballs, if one guy doesn't pay, there's a risk of a domino effect.
So the fed just continually pumps more and more money in at times of risk to keep everyone solvent, so the scam can continue.

Imagine being the politician/bureaucrat/media personality that draws the low straw on introducing TARP 2.0. You thought gun confiscation likely to kick off Civil War 2? Try the one issue that most unites the goyim across the political spectrum. Holy shit, I hope this happens just to see the reaction.

that article is several months out of date.

The banks are lending because someone out there is Lehman Brothers. They've been designated to fail and the Federal Reserve is the only lender willing to prop them up. The cost is apparently very high.

Someone will go down within the month.

Yup, I'm watching it. I may take up a short position, because I don't think they'll let it fall before Christmas. I'm expecting another bump, maybe 3-5 percent and then it will fall off a fucking cliff when they can't maintain the lie anymore. Truthfully, I don't know where they're getting the rabbits from at this point. That hat should have been empty a few months ago.

based old school ink. absolutely one of the best videos produced in the last crisis. watch this, friends.

The only store of value is your will and ability to take what you need.
You can only store value in arbitrary objects if all parties respect possession of property.
Where we're going Marty, we don't have respect for property.

Biz does scamcoins not bigcoin.

> Understanding the way the economy works now
That's the easy part.
The hard part is realizing the kikes that made this paradigm are the reason for boom and bust.
This shit caters to middlemen and merchants.
Producers and consumers are just "animal spirits" to the middlemen, like an afterthought.

it's on the news but it's a footnote. And even if normans knew what it meant, they downplay it.

Commodity futures are a decent hedge as long as the entire world doesn't collapse. Way cheaper than actually taking possession and storage of a commodity that you will not be using as feedstock for your personal business. Having 1000t of Steel is a pain to transport and store, but I can sell that future to a factory that actually makes things with steel.

That doesn't make sense. There's literally no scenario in which some form of economy doesn't function. Even if it's barter, you're assuming that no one will be willing to exchange their services as mercenaries in exchange for food or goods held by the kikes/elites. Tell me, in what world do you see us being reduced below barter level economy, where human beings are still extant?

this

it's ALL OF THEM
they're literally all going to drown trying to save deutche bank (douche bag)

This. But, the Fed doing it instead of banks, when the banks have like $1.2 Trillion in excess reserves at the Fed means that the banks seeking the Repo loans do not have nothing but shit assets as collateral. Something is certainly hinky, here.

South Korea is already at 2008 levels in terms of their economy. 18 months my ass. More like spring time. When crops are a month or more late to plant and get decimated again, things are going to get very bad, seemingly overnight.

Thank the lord I'm not the only one who knows about this. People look at me like a schizo when I try and warn them.

In a way, there's no other choice. We'll crash, regardless, because of the system they've created. But we've all been complicit in allowing it to continue. What comes next will be catastrophic. We're living the fall of Rome.
Truthfully, we're beyond blaming as a valuable reaction. Kikes can't do direct confrontation. They flat out won't survive without the lies they've built.
What we should be focusing on is "how do is save myself and my loved ones?"

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