The new Fed TOMO (Temporary Open Market Operations) are the first sign that the Fed must move aggressively to counter the tightening of the money markets.
A corrupt Orthodoxy devoid of new ideas, an Orthodoxy devoted to maintaining the wealth, status and power of insiders regardless of cost, is a brittle, fragile, unstable system.When the ruling Elites sense their control of the populace is waning, they …
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
When push comes to shove, the Fed’s got nothing
In accordance with the FOMC Directive issued September 18, 2019, the Open Market Trading Desk at the Federal Reserve Bank of New York will conduct an overnight repurchase agreement (repo) operation from 8:15 AM ET to 8:30 AM ET tomorrow, Thursday, Sept…
The story gaining traction in the mainstream is that the combination of dealer space (lack of) and a tax-receipt related drawdown at Treasury has left the funding markets uniquely exposed.
The Fed has a money market crisis on its hands. It’s a “crisis” that everyone should have seen coming because the handwriting has been on the wall for months.
What happens when the Fed does things…and the market doesn’t respond accordingly?
I have been warning for months that once the debt ceiling was lifted the money markets would tighten dramatically. It’s happening. Here’s a rundown of…
Before the Great “Recession” ended the business cycle as we once knew it, there was a widely accepted concept known as stall speed. In the US, if GDP growth decelerated down to around 2% it suggested the system had reached a danger zone of sorts. In a such a weakened state, one good push, or […]