1T about to hit
explain it to me as if I was a woman
>>61249653Your mom is a standing repo facility
>>61249675repo go vrrrrrrrrrrrrrrrrtreasury cash go schlorp shclorp
>>61249693that's the opposite of a "ur mom" joke tho
>>61249675Asset prices are about to explode upward because holding cash is completely pointless. People who hold money in savings accounts will see their purchasing power dwindle.
>>61249694how would you explain it to your ex
>>61249675
>>612497081k EOY (2026)
>>61249705they're about to explode because 1T is about to flow into the market all at once >>61249716
>>61249675>>61249708It's like after getting fucked in the ass for a long time and then finally getting that anal orgasm desu.
>>61249721Slurb da dib XDDDDD
>>61249653>>61249664How do these two graphs correlate. What does the treasury cash balance get spent on and why does that matter to SOFR.
>>61249716>Grok quoting ZHthey literally had a feud a week ago lmaoZH won
When the Fed "injects $28 Billion" into the banking system, how does that work?I thought the FED is usually just a useful tool for independent banks to store their funds in or to receive liquidity if they dont currently have it and the FED is looking to increase its balance sheet.I don't get how a suddenly injection can occur.
>>61250102They have a pneumatic tube system and send wads of cash to all big banks. Famously an new PE grad once died as he was enjoying the wind up his ass when the fed injected liquidity once.
>>61249716>zerohedge as a source
>>61249716>per ZeroHedge analysis
>>61250102They don’t inject 28 billion actually, for some reason people don’t understand still that the standing repo facility works differently post 2021. The Fed has a standing facility that banks can draw on for repo, they just choose not to because it doesn’t make economic sense until the rates are above the feds upper bound.
>>61250016C'mon. Do you really have any evidence Grok was losing? If so please present jt. It is performing well in the trading contest.
>>61250196Right repo open market operations sets the upper bound for ffr as I understand. How did it work pre 2021?Tbh we'll have to see what continues to happen. Was this a short term liquidity crunch or will it get worse.Also the repo is banks selling treasuries to the fed overnight. Treasuries are basically cash already. Imo it's not a smoking gun on its own. Tho last time this happened when there was no repo facility we got the fake chink aids. So this facility is there for a very important reason, to keep the zombie alive. >christ is king>I condemn the anti christ
>>61250399>how did it work pre-2021?They had to actively create a repo facility SPV and actively fund it basically, which is important because the rate could sometimes hang above the fed rate for a bit without it being a problem, see pic. They did from time to time is my understanding to control reserves mainly with repo OMO’s, but I’m less clear on that. It wasn’t an official policy though that overnight funding needed to adhere to the fed corridor, so they decided to make it standard when SOFR blew up and went 10% in 2019 and then they had to do RRP right after. They were already treating overnight rates as the fed rate basically and decided to >treasuries are basically cash already so it’s not a smoking gunYes, directly because of this facility you can just consider them cash I would agree
if you know what "repo" is and all these autistic acronyms and bleeps and bloops that make no fucking sense you get no pussy
>>61249705So this will give us a last-minute crypto bullrun?
>>61249721noif you are risk averse, just because le trillion cash "flows into the market all at once" it does meant all of it will go into risky investmentsinterest rates are still high enough that someone with a million bucks makes 40k doing nothingand by the time they lower rates, it will be because unemployment is going up so we will crash as they lower rates, and those holding cash will buy cheap stocks and btci dont need to know any of that aspie shit because that is what makes sense.
>>61250550>you should listen to me because I don't know shitCool
>>61250534Thanks anon. That's interesting the times that sofr was below ffr and effr. I guess those were times of extreme liquidity. Wouldn't you just borrow with no collateral? It doesn't show volume but I assume that's exactly what happened.Now I wonder if understanding all this actually gives a leg up to an investor or if they do so much in secret that it doesn't matter. Is this just theater to trap the more intelligent plebs?
>>61250723>wouldn’t you just borrow with no collateralThat would be different, that would be unsecured overnight financing which I believe is still included in the OBR but I’m not sure how and couldn’t tell you how much of it is unsecured. All negative rates mean is there’s ample liquidity exactly correct, and since there was no reverse repo facility there’s nothing to sop up that excess liquidity so it just drives rates down. If the fed had not established their standing reverse repo facility that’s probably what SOFR would have looked like, very depressed yields very negative to the fed funds rate. Which is also kind of a paradoxical problem, low rates lead to low coupon payments causing inflation, high rates to high payments causing deflation, which is probably why so many people have a hard time with why the Fed does things because it’s not exactly logical sometimes.>does this help you tradeI think having your finger on banking liquidity like this is important to any trader. It probably only directly impacts people trading in money market funds, but it’s part of any well rounded traders macro knowledge in my opinion.
>>61249708Don’t worry about it you stupid bitch it’s beyond your realm
>>61249664how is this a bad thing? all my stocks will go up
>>61251165>how is this a bad thing?it's not bad for us...I said meltIUP
>>61249664>>61249653These cunts are saying that they want to get the money to the real economy and not financial markets.How does that work?
>>61250550>autistic acronyms and bleeps and bloopI would agree but we're talking about repo and the treasury account, that's like baby level financial understanding just end it all if you don't know these
>>61250189>analysisthere is no "analysis" it's raw data
>>61250163zh is not the sourcethe source is the fucking treasury dpt
>>61251194>These cunts are saying that they want to get the money to the real economy and not financial markets.who the fuck is saying thatwhoever is saying that is lying
>>61251215J Powell and Bessent.
