/biz/ - Business & Finance

[Anonymous No.16619938]

Can someone explain why them lending billions in the repo market is such a big deal if the banks are paying back the loan?

[Anonymous No.16619946]

>>16619938
it's not goy everything is fine

[Anonymous No.16619971]

>>16619938
Because it indicates that the banks are not able to get better deals from lending to each other, which means that once repo operations stop, interest rates will rise beyond targeted rates. Therefore the fed has to continue injecting liquidity at increasing levels, or else we’ll have a crash without any cushion for interest rates to be lowered by the fed funds rate, and must be counteracted with fiscal policy, which would cause hyperinflation.

[Anonymous No.16620041]

>>16619938
It's not a big deal.

The United States Dollar is currently the most deflationary currency in the world right now.

This means it is the strongest on planet earth.

[Anonymous No.16620481]

>>16619938
banks have no money, they will do bail ins.

[Anonymous No.16620486]

Because Israel