![]() As such, we agree with those saying spiking repo rates are not a sign of trouble in the US banking system – that is 100% correct. low enough to not blow up the system), then what the Fed is effectively doing is financing the US government through the banking system. Bank of America’s Mark Cabana is one of the world’s foremost experts on the US monetary plumbing and he has it exactly right – if US deficits are the core reason that repo rates are spiking (because US deficits are crowding out the US banking system), then when the Fed launches a large repo program to get the repo rate back “under control” (i.e. However, we believe they are missing the forest for the trees. We are finding that many traders and people deep in the weeds on the plumbing are focused on merely the mechanical aspects of the new large repo program the Fed launched this week. We opened the report that week with “One of the most important macro quotes of 2019”:ĭespite the noise and panic around the US Banking System, we went on to explain why we did NOT think this was primarily a US Banking System problem. That’s the signal we were listening for as we wrote the Septemissue. “…the mainstream media, with their strong links to the world of banking and large investment funds, have remained silent about the fact that once again, the public authorities are forced to come to the rescue of big banks…”īut was the problem really the US Banking system or was something else going on? “This differential represents at least 40 standard deviations from the average which is an extremely unlikely, if not an impossible, event occurring according to a statistically normal bell-curve distribution.”Īgain, lots of stats and charts and, of course, commentary.Īka., noise. Zero Hedge calculated that, since 2006, the average difference between the GC repo rate and the federal funds rate was 0.25%, whereas on 17 September 2019 the differential reached was 7.7%. And no doubt the financial newsletter companies were adding to the noise by firing up their doom and gloom pitches. So as you can imagine, it produced quite a bit of noise in the markets. This was the largest intraday move in the history of the repo market and the 10% rate reached was the highest rate recorded in decades. TWO – the federal funds rate (the official interest rate) rose to 2.30% in response to the dramatic move in the repo rate which was 5 basis points above the target band of 2% to 2.25% set by the Federal Open Market Committee (FOMC). ONE – the ‘general collateral (GC) repo rate’ exploded to 10% up from 2.42% from the previous closing day, representing a 7.58% intraday movement and He also brought back several banned users, including reinstating the account of former US president Donald Trump, and fired most of the staff at the social media platform.On Tuesday, September 17th 2019, two unusual and unexpected events took place in the US money markets. In a bid to entice users to pay for its services, a verified Twitter subscription allowed accounts to write longer posts and format them as well as rank higher in conversations. ![]() One of his early changes to the platform was to have users pay for a verified Twitter account, a move that was subject to much criticism at the time. TweetDeck is the latest service on X to move behind a paywall since Musk acquired Twitter late last year. Users could monitor multiple accounts, post and react from the website or app, as well as view lists, trends, hashtags and more in separate columns. It was used as a dashboard to better view and interact with Tweets. TweetDeck was released more than a decade ago as a third party platform and acquired by Twitter in 2011. The service, which used to be an independent app and free to use, had been renamed as X Pro by the billionaire following Twitter’s rebrand to X last month.Īs of Wednesday, the URL now takes users to an X premium Blue sign up that costs a little more than €9 a month. Much to the chagrin of many social media users, Elon Musk appears to have moved TweetDeck behind a paywall. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |