Worldwide Analysis. Could be the operate on the Dollar considering Panic or Greed?

What’s happening into the repo market? Rates on repurchase agreements (“repo”) must be around 2%, based on the fed funds price. However they shot as much as over 5% on September 16 and got up to 10% on September 17. Yet banking institutions had been refusing to lend to one another, evidently moving up profits that are big hold onto their cash – in the same way they did when you look at the housing marketplace crash and Great Recession of 2008-09.

The Federal Reserve Bank of New York jumped in, increasing its overnight repo operations to $75 billion; and on October 23 it upped the ante to $120 billion in overnight operations and $45 billion in longer-term operations since banks weren’t lending. Leer más