Off The Cuff: Understanding The Trouble With Repo Rates

Adam Taggart September 21, 2019

In this week’s Off The Cuff podcast, Chris and Wolf Richter discuss:

What is the repo rate?
Why did the rate suddenly skyrocket?
Why a liquidity crisis is so dangerous
Will the Fed really start up QE again?

Something completely unexpected happened this week. Banks started running out of cash reserves. As a result, the cost for them to borrow money overnight — the repo rate — suddenly skyrocketed, taking the banking system and the Federal Reserve by surprise.

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Top Comment

Amen, Snydeman!
Assuming im getting all this correctly, it feels like there’s something big moving underneath that we aren’t seeing, and that something somewhere might have...

by pinecarr

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