The US Treasury daily tax data showed weak revenue and soaring outlays in October. The deficit is soaring, but the Fed is monetizing every penny…
If the Fed wants money rates to drop and stay down by another quarter point, it will need to imagineer even more money.
The Fed keeps imagineering money into existence, right on schedule. But t’ain’t buying what it used ta.
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.