Worldwide Analysis. May be the run using the Dollar considering Panic or Greed?

Worldwide Analysis. May be the run using the Dollar considering Panic or Greed?

What’s taking place when you look at the repo market? Rates on repurchase agreements (“repo”) should always be around 2%, on the basis of the fed funds price. Nevertheless they shot as much as over 5% on September 16 and got since high as 10% on September 17. Yet banking institutions had been refusing to provide to one another, evidently passing up big earnings to keep their cash – just like they did within the housing marketplace crash and Great Recession of 2008-09.

The Federal Reserve Bank of New York jumped in, increasing its overnight repo operations to $75 billion; and on October 23 it upped the ante to $120 billion in overnight operations and $45 billion in longer-term operations since banks weren’t lending. […]