[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance


View post   

File: 67 KB, 687x871, 2019-REPO-CRISIS-Mother-of.jpg [View same] [iqdb] [saucenao] [google]
16738229 No.16738229 [Reply] [Original]

Explain repo crisis to me like I am a child and how it'll cause the collapse or something?

>> No.16738249

>>16738229
its a jew trickery

>> No.16738294

>>16738249
That doesn't explain anything!

>> No.16738355
File: 6 KB, 210x240, images (7).jpg [View same] [iqdb] [saucenao] [google]
16738355

some anon described it as a way to provide money to banks to pay for their daily operations without having to sell their stocks. A holding scheme. Normally they'd be using money between banks but the banks don't trust each other so they won't lend the money... so its forcing the fed to step in.

>> No.16738484

>>16738294
it's what hitler was trying to avoid

>> No.16738556

>>16738229
It's complicated and there are lots of moving pieces, but it is best simplified as this: the finance and economic system is so messed up right now that the big banks literally have to submit an estimation EVERY SINGLE NIGHT for the amount of cash/liquidity that will need for the next day or so. The Fed then signs off on it and 'prints' the money for them which is then injected into the economy for loans etc. to keep other business and companies from tanking. If the banks did not submit these 'repo loans' each day, a bank would fail overnight. This isn't like 2008 where they banks don't realize they are running out of money due to bad investments, THEY HAVE NO MONEY right now, hence these repo loans which is a temporary solution to make it seem like the banks do not need money from the government and that 'all is well'.

>> No.16738610
File: 1.37 MB, 2100x4000, CrackRockEconomics.png [View same] [iqdb] [saucenao] [google]
16738610

Martin Armstrong is not a very good source, I'm open minded but his information is sometimes actively misleading.

>> No.16738632

>>16738355
>provide money to banks to pay for their daily operations without having to sell their stocks
Yes and no. The banks don't hold enough assets/stocks to even cover what they need. They have enough in 'toxic assets', but no one is going to buy that shit again like in 2008. So, a majority of their assets are worth ZERO because banks don't have the money to buy them - it's not a matter if they want to buy them are not - they simply can't. If they sold majority of their no-toxic assets, that would not even last a week and they would need repo loans. It's a self fulfilling prophecy because the banks don't have enough assets to sell that wold last them even a week, and the assets they do have that could bee sold to help are toxic and the banks don't have money to buy them even if tried to.

>> No.16738663

>>16738229
The European banks are a crock of shite, m8

They have run out of USD$

The Fed is bailing out maybe DB, maybe the Italians, maybe Santander?

The Eurozone is a half-born, inbred cousinfuck baby just end the suffering already for the love of Ave Maria Milky Way and Sol Invictus

>> No.16738762

>>16738556
>>16738632
How come Micheal Burry or Mark Baum not on this shit yet? Aren't they experts on this? How come bunch of /biz/tards know about this more than them?

>> No.16738819

>>16738762
Why would hedge fund managers want to destroy the ecosystem that gives them feed?

>> No.16738837
File: 30 KB, 692x335, Reporate.jpg [View same] [iqdb] [saucenao] [google]
16738837

Oh shit, this is freaking me out /biz/oys. But it seems like it's less leveraged than 2008.

>> No.16738866

>>16738819
They shorted them in 2008?

>> No.16738922
File: 424 KB, 975x943, anonexplainsqe.jpg [View same] [iqdb] [saucenao] [google]
16738922

>>16738229

>> No.16738976

>>16738922
more of this, i wanna go full into the rabbithole

>> No.16739002

>>16738976
Check out this playlist and channel in general https://www.youtube.com/watch?v=thfJXeMzedc&list=PLdIZc_RaumFDlP041khqznqCOZrMsEgji

>> No.16739019

>>16139983

Read this thread. It's exactly what youre asking for

>> No.16739049

>>16738976
Go watch George Gammon

>> No.16739054

>>16739019
This one is better: https://archived.moe/biz/thread/16006742

Ctrl+F for ID DqWJwyDo to cycle through OP's posts in particular, but the whole thread is good

>> No.16739072
File: 2.63 MB, 1280x720, 1571867220680.webm [View same] [iqdb] [saucenao] [google]
16739072

>>16739054
This is the warosu version that actually archives the pictures too like this one, but doesn't show the IDs >>/biz/thread/S16006742

>> No.16739130

>>16738229
speaking about this does anyone here have access to martin armstrongs report?
also best way to draw the attention away from local banking collapse is foreign war

>> No.16739140

>>16738762
Because they know its not a big deal, and the doomers on Biz are actual subhuman morons

>> No.16739147

>>16739054
>>/biz/thread/S16006742#p16006742
>don't post anything from that shit malware riddled archive ever again newfag

>> No.16739160
File: 65 KB, 1200x514, E642F8CA-7ADC-47CC-B172-22B7AECEB009.jpg [View same] [iqdb] [saucenao] [google]
16739160

>>16739140

>> No.16739188

>>16738762
Don't ask questions. Just short the market with maximum leverage. All of the major financial institutions and experienced professional traders are still in the market because they're more ignorant than random losers that waste time on /biz/.

>> No.16739217

>>16739188
no but due to the turnover inherent to the industry most "professional" traders are quite new to the job and have never witnessed a bear market in their careers, unironical crypto traders of 5 years have a lifetime of experience over any stocktrading deskjockey
also financial institutions get paid if the market goes up or down and they have to achieve their targets at quarterly reports, they cant just say i know a recession is coming in a year i am not going to do anything with my book in the meantime
because understand this they don't care about hteir clients money, only about getting their commission and bonusses

>> No.16739284

>>16739217
Good bait. Clean up the spelling, capitalization, and punctuation, and it'd make a good copy-paste.

>> No.16739468

From what I understand, the repo market is an interbanking lending operation where the big boys lend money to eachother. They voluntarily do this so long as they have X amount of reserves, the number of which they determine by themselves.

A few months ago, despite having the reserves, one of the big banks (JP Morgan) pulled out of the REPO market and borrowing costs went sky high.

The Fed intervened.

It all sounds very fishy. It was an engineered crisis to allow the Fed to act to boost liquidity without fully committing to a QE program. Think of it as a temporary QE, even if QE was meant to be temporary itself.

Basically, the banking system is addicted to cheap money and threw a tantrum.

>>16738663

>The Fed is bailing out maybe DB, maybe the Italians, maybe Santander?

Nah, DB has been deleveraging which is why there has been so much propaganda about it in the Western press. It's the American investment banks that have leveraged themselves up to the hilt.

>> No.16739499

>>16739054
>https://archived.moe/biz/thread/16006742
good read

>> No.16739509

>>16739188
Major financial institutions are in the market because they have to be, those boomer pensions aren't going to grow themselves with 3% 20 year bonds you know, while paying interest swap premiums to boot.