Today’s Fed POMO was small, but TOMO went through the roof.
It’s the same old “rescue the dealers and bankers, enrich the hedgies, and screw the little guy,” all the time.
The Fed is expanding its de facto Standing Repo Facility.
Notice the words, “at least.”
Nothing to see here. Move along.
Are bank regulations really behind the repo market problems? That’s what bankers and their hired mouthpieces are saying. But it’s absolute BS, of course. Here’s the real issue.
Fed repos were down on Friday, but we are not out of the woods yet. Not by a long shot. Here’s why. And why it’s scary.
Fed repos outstanding from Temporary Open Market Operations (TOMO) hit a new record on Thursday, October 17. That, in just over a month since the program started, to fix a money market problem that was supposed to be a “one-off.”
One-off my ass.
The Fed started POMO today. But TOMO went up too. Stresses continue to build.
LIndsay Williams interviews Lee on Strictly Business. Recorded Tuesday, October 15. Click headline to hear the interview.
Wall Street and the Fed tell us there’s no crisis. Come on. Get real! They don’t pump $200 billion in cash into the market in a month, with a promise to do more for months to come, unless there’s a crisis.
The story of the Fed’s QE New is a day by day chronical of madness. I’ve written about it extensively even before it started. Here’s a list of those posts, with links to the full post. This archive begins with a couple of antecedents in August as the conditions flared up that led to the…