Bailing out its crybaby-cronies on Wall Street, even when there isn’t a crisis.
The fastest increase in assets for any two-month period since the post-Lehman freak show in late 2008 and early 2009.
Whose Bets are Getting Bailed Out by the Fed’s Repos & T-Bill Purchases?
Whose Bets are Getting Bailed Out by the Fed’s Repos & Treasury Bill Purchases?
“Does that mean that we have bad markets?”
Ending the repo market blowout and un-inverting the yield curve.
The repo blow-out — whoever instigated it — comes in real handy.
I wish I could have sat in that meeting, watching the bewildered faces of Fed officials as they got hourly updates on repo rates blowing out.
Meanwhile, the Fed relentlessly sheds MBS, replacing them with Treasuries, including short-term Bills.
The hullabaloo in the repo market torpedoed the function of Interest on Excess Reserves and forced the Fed to go back to the future.