The Repo Men...
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    The Repo Men...

    OK I admit this is a real snooze-fest but try to stay with me....

    I won't go into the horrendously boring details, you guys are smart enough to research this if you care.

    The Fed suddenly had to step into the repo market a couple if days ago. Now they are staying in it for a while. Like a month. Here's what bothers me:

    Nobody's talking about what's up. Which means...

    1. They don't know. That's pretty scary.
    2. They know, but ain't saying. That's scary as hell.

    I'm thinking somebody large is having an liquidity issue....probably in Europe? We'll find our eventually. Eh, maybe it's nothing....

    https://finance.yahoo.com/news/fundi...075812702.html
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    Definition of clip

    1: any of various devices that grip, clasp, or hook
    2: a device to hold cartridges for charging the magazines of some rifles; also : a magazine from which ammunition is fed into the chamber of a firearm.

    http://www.merriam-webster.com/dictionary/clip

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    I don't understand it at all, but I will hazard a guess that some of the "deep state" entrenched in the financial arena are beginning manipulations to cause the appearance of an "election year recession", if not the actual fact of an upset in the financial world.

    Cynical? You betcha! We've seen them at work since before the election, and the ones that are outed in public (Comey, McCabe, Clapper, Bruce and Nellie Ohr, Strozk & Paige are merely the visible tip of a VERY deep and ominous iceberg.

    They are a big and vicious bunch, and the tentacles of the organization reach into nearly every part of the organization that we call our "government". They lack any scruples, and they know no limits. The entire goal is to do whatever it takes to destroy any (or ALL) parts of the Republic.
    Last edited by Flash60601; 09-20-2019 at 04:52 PM.
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    I'm not sure what the article in the link is saying (it's above my pay grade, apparently) so I'll let someone else explain it. In spite of that, I don't like this, not one little bit. Instinct, perhaps?
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    I'd have to type pages to give this a fair airing, but the short story is this is like the basic plumbing of the financial system. It's used for a wide variety of short-term funding activities, not the least of which are money market funds. Repo's are how MM funds make some of their interest. Basically, if you've got a bunch of bonds but you need some cash, you can use the bonds as collateral for a short-term loan via a "Repo" which is the short version of "Repurchase Agreement". You sell your bonds and agree to buy them back at a slightly higher price a short time later.

    Those that are holding cash aren't stepping up with the money to enter into repo agreements (which they profit from). Why? This is not normal. Like really-strange-never happens kind of thing. I think this happened some during the financial crisis. That's not very reassuring.

    They are blaming it on just a bunch of unusual occurrences and over-regulation. But that's just speculation on the part of the financial press. There's been no official response really. Other than to back-stop it.
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    Definition of clip

    1: any of various devices that grip, clasp, or hook
    2: a device to hold cartridges for charging the magazines of some rifles; also : a magazine from which ammunition is fed into the chamber of a firearm.

    http://www.merriam-webster.com/dictionary/clip

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    I'm not sure where the Telegraph (UK paper) sourced their story, but it appears the Fed has pledged a trillion dollars in the next few weeks for the repo market. That's on the order of TARP when a GOP administration handled it the first few months of the 2008 crisis.

    https://www.telegraph.co.uk/business...svN5-Z55TJYvZI
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    I've read your explanations since my earlier post, and I feel as though I'm standing on the precipice of a very high cliff, the bottom of which is beyond my sight. The cliff edge under my feet is trembling just that tiny little bit.

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    Precious metals and powder
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    Quote Originally Posted by TrucksNCoffee View Post
    I've read your explanations since my earlier post, and I feel as though I'm standing on the precipice of a very high cliff, the bottom of which is beyond my sight. The cliff edge under my feet is trembling just that tiny little bit.
    There's just a whole lot of weird things going on. 25% of the World Sovereign debt is trading at negative interest rates. That's something that's never happened in the 4,000 years since they invented debt. Now this Repo thing. I feel a disturbance in the force.

    The German government sold 869 million euros of 30-year bonds with a negative yield, for the first time ever, adding to the world's growing $15 trillion in existing negative yielding debt. The bund, set to mature in 2050, has a zero coupon, meaning it pays no interest.
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    Definition of clip

    1: any of various devices that grip, clasp, or hook
    2: a device to hold cartridges for charging the magazines of some rifles; also : a magazine from which ammunition is fed into the chamber of a firearm.

    http://www.merriam-webster.com/dictionary/clip

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    Precious metals, you say?

    https://www.monex.com/prods/silver_chart.html

    Silver was bobbling along between $14-16 until mid-July. Now it is $17.98 spot. Gold, Platinum, etc are doing about as much.
    glenwolde likes this.
    You must be careful what you pretend to be, because in the end, you are what you pretend to be.
    ....................Kurt Vonnegut, in "Mother Night"

    All governments suffer a recurring problem: Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible. Such people have a tendency to become drunk on violence, a condition to which they are quickly addicted. . . . . . . . . . . . .. — Frank Herbert, Chapterhouse: Dune

 

 
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