f7ben Posted June 9, 2021 Share Posted June 9, 2021 The fed reserve is lending 500 billion dollars in a single overnight repo session to god knows who keeping our failed global economy afloat Nobody is asking why 1 Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted June 9, 2021 Platinum Contributing Member Share Posted June 9, 2021 5 minutes ago, f7ben said: The fed reserve is lending 500 billion dollars in a single overnight repo session to god knows who keeping our failed global economy afloat Nobody is asking why This the program you are talking about? Part of the Cares Act? https://www.brookings.edu/research/explaining-the-new-fed-treasury-emergency-fund/ Quote Link to comment Share on other sites More sharing options...
f7ben Posted June 9, 2021 Author Share Posted June 9, 2021 9 minutes ago, Highmark said: This the program you are talking about? Part of the Cares Act? https://www.brookings.edu/research/explaining-the-new-fed-treasury-emergency-fund/ https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKCN2DJ2AQ Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted June 9, 2021 Platinum Contributing Member Share Posted June 9, 2021 (edited) 37 minutes ago, f7ben said: The fed reserve is lending 500 billion dollars in a single overnight repo session to god knows who keeping our failed global economy afloat Nobody is asking why When the Federal Reserve conducts an overnight RRP, it sells a security to an eligible counterparty and simultaneously agrees to buy the security back the next day. This transaction does not affect the size of the System Open Market Account (SOMA) portfolio, but there is a reduction in reserve balances on the liability side of the Federal Reserve's balance sheet and a corresponding increase in reverse repo obligations while the trade is outstanding. The FOMC sets the ON RRP offering rate, which is the maximum interest rate the Federal Reserve is willing to pay in an ON RRP operation; the actual interest rate that a counterparty receives is determined through an auction process. The Federal Reserve conducted technical exercises using ON RRPs beginning in September 2013 in order to gain operational experience and garner information about how such operations might be used during the policy normalization process. The ON RRP offering rate (the maximum interest rate that the Federal Reserve is willing to pay on ON RRP operations) plays a role for ON RRP counterparties that is similar to the role played by the interest rate on excess reserves for depository institutions. That is, in general, any counterparty that can use the ON RRP facility should be unwilling to invest funds overnight with another counterparty at a rate below the ON RRP rate, just as any depository institution eligible to earn interest on reserves should be unwilling to invest funds overnight with another counterparty at a rate below the interest rate on excess reserves. The Federal Reserve currently conducts ON RRP operations with many counterparties, covering a wide range of entities (the list of ON RRP counterparties is available here). The Federal Reserve’s reverse repurchase facility on Monday attracted $486.1 billion in cash, a record high, with financial institutions lending to the U.S. central bank at a 0% interest rate in a sign there are few investment options available in a low yield environment The financial market has been awash in cash over the last few months given the Fed’s asset buying program and the U.S. Treasury’s payments to various institutions, entities, and individuals for pandemic relief. That cash has found its way to the reverse repo facility launched in 2013 to mop up excess liquidity in the repo market. Edited June 9, 2021 by Highmark Quote Link to comment Share on other sites More sharing options...
f7ben Posted June 9, 2021 Author Share Posted June 9, 2021 Ahhh , I didn’t catch is was reverse repo operations. Quote Link to comment Share on other sites More sharing options...
s pump Posted June 9, 2021 Share Posted June 9, 2021 2 minutes ago, f7ben said: Ahhh , I didn’t catch is was reverse repo operations. 😎 Quote Link to comment Share on other sites More sharing options...
f7ben Posted June 9, 2021 Author Share Posted June 9, 2021 3 minutes ago, s pump said: 😎 Stifle it moonbeam Quote Link to comment Share on other sites More sharing options...
s pump Posted June 9, 2021 Share Posted June 9, 2021 4 minutes ago, f7ben said: Stifle it moonbeam Where's my fucking Cow??? Quote Link to comment Share on other sites More sharing options...
f7ben Posted June 9, 2021 Author Share Posted June 9, 2021 5 minutes ago, s pump said: Where's my fucking Cow??? On its way Quote Link to comment Share on other sites More sharing options...
Zambroski Posted June 9, 2021 Share Posted June 9, 2021 31 minutes ago, f7ben said: Ahhh , I didn’t catch is was reverse repo operations. Umm....please leave the self “Khasshogi-ing” to MC. It’s really not a good color on you. 2 Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted June 9, 2021 Platinum Contributing Member Share Posted June 9, 2021 (edited) 1 hour ago, f7ben said: Ahhh , I didn’t catch is was reverse repo operations. Wouldn't expect you to considering its in the very first line of the link you posted. Edited June 9, 2021 by Highmark Quote Link to comment Share on other sites More sharing options...
Snake Posted June 9, 2021 Share Posted June 9, 2021 While you retards babble about covid 1 5 Quote Link to comment Share on other sites More sharing options...
ford_428cj Posted June 10, 2021 Share Posted June 10, 2021 Quote Link to comment Share on other sites More sharing options...
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