Menu Close

Nice Work

According to DTCC’s repo #s, there’s a good chance fed funds was outside the range today, too. It was put at 3% this afternoon despite this morning’s FRBNY operation, which is still higher than Monday when EFF sat right at the upper bound. 

In case it wasn’t clear, I was being sarcastic in the tweet above. Despite these being repo operations, you can’t see any difference in repo.

As the bottleneck passes, I’m sure Powell will declare it a success when it has been revealed as anything but one. That’s why this calendar bottleneck matters; it shows that when push comes to shove, the Fed’s got nothing. The global dollar system in a weakened systemic state, what happens if something really does start to go wrong – not just a calendar bottleneck but a very real collateral bottleneck? 

RSS
Follow by Email
LinkedIn
LinkedIn
Share

Discover more from The Wall Street Examiner

Subscribe now to keep reading and get access to the full archive.

Continue reading