Reverse Repo Meltdown: Will the Fed’s Safety Net Collapse?
Have you ever wondered about the ‘Too Big to Fail’ entities and how they’ve shaped our financial world since 2008? Well, we’ve got the answers you’ve been looking for, and you might be surprised to find out it’s not just about you and me!
📊 Today, we’re diving deep into the intriguing world of the repo market. But what is a ‘repo,’ and why should you care about it? Let’s break it down. ‘Repo’ is short for ‘repurchase agreement,’ and it’s a fascinating financial concept. Here’s how it works: the government issues treasuries, then sells them to private parties, with a promise to buy them back with a bit of interest at a specified time and day.
🤯 Join us as we unravel the complexities of the repo market and its significance in today’s financial landscape. You won’t want to miss this! Get ready to gain a whole new perspective on the financial world.💰📈
CHAPTERS:
0:00 Limited Choices
1:26 What is the Repo Market?
1:56 Reverse Repo
7:28 Treasury Bill Appetite
11:50 Money Market Repurchase Agreements
14:56 The Plumbing Of The Global Financial System
16:00 Are T-Bills A Safe Asset?
22:03 Burkina Faso
26:03 What are Central Banks Doing?
SLIDES FROM VIDEO:
SOURCES:
https://fred.stlouisfed.org/series/BOGZ1FL632051103Q
https://fred.stlouisfed.org/series/RRPONTSYD
https://www.wsj.com/articles/wall-street-buys-more-t-bills-parks-less-at-fed-304cf41e
https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2023
