/biz/ - Business & Finance

>>26430196
30% in a year isn't good.

>>26427412
Too big to fail.

>>25935085
The repo markets are the interbank lending markets.
Banks used to be required to keep 10% of their assets on reserve, and other banks would cover for each other if they were under the required percentage.
What happened is the banks were either out of money, or didn't trust each other and the markets cracked in September 2019.

So the Fed stepped in and loaned out 50 billion on the first night, and it continued until it was over a trillion being lent out each night in March.

https://www.federalreserve.gov/monetarypolicy/reservereq.htm
>As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.

So I suspect the entire covid event and lockdown was a controlled demolition for the bank to retain power.
What the lockdown did was kill monetary velocity and gave them the power to print trillions to keep things functioning as "normal" while killing small businesses and other control mechanisms.