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Thread: FEDS:53 million to rescue overnight leanding market

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    Default FEDS:53 million to rescue overnight leanding market

    https://www.msn.com/en-us/money/mark...cid=spartandhp



    last time they had to do this was 2008

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    Phantasmal (09-18-2019)

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    What’s a “Leanding” market?
    Last edited by Earl; 09-18-2019 at 06:14 AM.

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    why did the fed have to inject 10s of millions of dollars to shore up overnight lending?


    do you understand that is NOT A GOOD ECONOMIC SIGN??????

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    Quote Originally Posted by Earl View Post
    What’s a “Lea Ding” market.
    how fucking stupid are you?

    so fucking stupid you misspelled my misspelling of lending

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    Quote Originally Posted by evince View Post
    why did the fed have to inject 10s of millions of dollars to shore up overnight lending?


    do you understand that is NOT A GOOD ECONOMIC SIGN??????
    "However, analysts drew a distinction between the current period of stress and what happened during the crisis. Back then, investors were deeply worried about the financial health of banks. "Today, banks are hauling in record profits and balance sheets look sturdy."

    "It's unclear what exactly is causing the stress in the overnight market, or how long it will last."

    "No one knows why this is happening," Jim Bianco CEO of Bianco Research, said on Twitter. "If it persists more than another day or two, it will be a problem."

    Cabana, the Bank of America analyst, blamed the spike in overnight lending rates on the Fed badly underestimating the amount of cash needed to keep the financial system operating smoothly.

    "The Fed just made a policy mistake," Cabana said. "There is not enough cash in the banking system for the banks to meet all of their liquidity and regulatory needs. I'm not that worried, because the Fed will fix it."

    And of course, CNN is going to try to blame it on tax cuts and the deficit, but that seems to be THEIR "theory", not the analyst's. My main take away from the article was screwed up fed policy, and guess who is not real happy with the fed right now? Hint: He's the president of the USA. Second hint: His initials are DJT Third hint: It's Trump
    “The Communist party must control the guns.”
    ― Mao Tse-tung



    “Those who vote decide nothing. Those who count the vote decide everything.”-Generally attributed to Uncle Joe Stalin



    “Everything under heaven is in utter choas; the situation is excellent.”
    ― mao tse-tung

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    Quote Originally Posted by evince View Post
    a typo cock breath?


    you sure seem to have problems understanding what is important
    Obviously cock breath is important to you.

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    Quote Originally Posted by evince View Post
    https://www.msn.com/en-us/money/mark...cid=spartandhp



    last time they had to do this was 2008






    The first attempt by the NY Fed was canceled because of "technical difficulties." Minutes later, the NY Fed successfully injected $53 billion into the system.
    The episode demonstrates evidence of emerging strains in financial markets and raises concern that the Federal Reserve could be losing its grip on short-term rates.
    "The funding markets are clearly stressed," said Guy LeBas, managing director of fixed income strategy at Janney Capital Markets. "It's going to require Fed action."
    The NY Fed announced plans late Tuesday to hold another repurchase agreement operation on Wednesday that would aim to repurchase up to an additional $75 billion.
    Rates spike
    The rate on overnight repurchase agreements hit 5% on Monday, according to Refinitiv data. That's up from 2.29% late last week and well above the target range set in July by the Federal Reserve, which is 2% to 2.25%. The surge continued Tuesday, with the overnight rate hitting a high of 10% before the NY Fed stepped in.
    Although it doesn't get as much attention as the Dow or the 10-year Treasury rate, this overnight market plays a central role in modern finance. It allows banks to quickly and cheaply borrow money, for short periods of time, often to buy bonds like Treasurys. This market broke down during the 2008 financial crisis.
    However, analysts drew a distinction between the current period of stress and what happened during the crisis. Back then, investors were deeply worried about the financial health of banks. Today, banks are hauling in record profits and balance sheets look sturdy.
    It's unclear what exactly is causing the stress in the overnight market, or how long it will last.
    "No one knows why this is happening," Jim Bianco CEO of Bianco Research, said on Twitter. "If it persists more than another day or two, it will be a problem."

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    Quote Originally Posted by evince View Post
    no


    you are not important to me
    It was on your mind and you typed it first....

    Seriously, who the hell has cock breath on their mind and mouth.... Oh, Evince


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    Quote Originally Posted by evince View Post
    The first attempt by the NY Fed was canceled because of "technical difficulties." Minutes later, the NY Fed successfully injected $53 billion into the system.
    The episode demonstrates evidence of emerging strains in financial markets and raises concern that the Federal Reserve could be losing its grip on short-term rates.
    "The funding markets are clearly stressed," said Guy LeBas, managing director of fixed income strategy at Janney Capital Markets. "It's going to require Fed action."
    The NY Fed announced plans late Tuesday to hold another repurchase agreement operation on Wednesday that would aim to repurchase up to an additional $75 billion.
    Rates spike
    The rate on overnight repurchase agreements hit 5% on Monday, according to Refinitiv data. That's up from 2.29% late last week and well above the target range set in July by the Federal Reserve, which is 2% to 2.25%. The surge continued Tuesday, with the overnight rate hitting a high of 10% before the NY Fed stepped in.
    Although it doesn't get as much attention as the Dow or the 10-year Treasury rate, this overnight market plays a central role in modern finance. It allows banks to quickly and cheaply borrow money, for short periods of time, often to buy bonds like Treasurys. This market broke down during the 2008 financial crisis.
    However, analysts drew a distinction between the current period of stress and what happened during the crisis. Back then, investors were deeply worried about the financial health of banks. Today, banks are hauling in record profits and balance sheets look sturdy.
    It's unclear what exactly is causing the stress in the overnight market, or how long it will last.
    "No one knows why this is happening," Jim Bianco CEO of Bianco Research, said on Twitter. "If it persists more than another day or two, it will be a problem."
    so what if this situation persists?

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