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Off the Cuff

Off The Cuff: Understanding The Trouble With Repo Rates

The User's Profile Adam Taggart September 21, 2019
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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...
Anonymous Author by pinecarr
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Start Here What Do I Do?