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*** FED injects $75 Billion into market! ***

<SLV>

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#1
First time since the 2008 collapse. Another "liquidity crisis"?

IIRC when the FED stepped in in 2008 it was at or under the $25B level.

https://news.yahoo.com/york-fed-steps-market-move-interest-rates-154639660.html

New York (AFP) - The New York Federal Reserve Bank on Tuesday stepped into financial markets for the first time in more than a decade to keep interest rates in line with the Fed's target.
Analysts say the operation appears to have been successful but it caused some jitters, coming as the Fed's policy-setting Federal Open Market Committee opens a two-day meeting expected to produce a second cut in the benchmark lending rate.
The New York Fed said the $75 billion in repurchase agreements -- known as "repos" -- were made "in order to help maintain the federal funds rate within the target range of 2 to 2-1/4 percent."
The New York Fed conducts regular operations to implement the FOMC's policy but the rate had moved to the top of the range, 2.25 percent, as demand for cash rose amid falling bank reserves.
Kathy Bostjancic, Oxford Economics' chief US financial economist, told AFP there was a "tsunami" of technical factors driving the demand for funds and pushing rates out of whack but the big injection helped.
It was the first such operation since September 2008...
 

<SLV>

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#3

<SLV>

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#4
Not even being reported on CNBC and Bloomberg!
 

keef

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#5
Stay cool, bro

Since 2008 there are built in liquidity injectors to keep this economic engine from seizing up.

Might blow a little smoke at first cuz we are officially burning a little oil, but I have run engines like this for years and so can the Fed.
 

<SLV>

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#7
Is $75 Billion a lot?
 

Buck

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#9
Isn't it 'their' money on the line at this time?
No Bail In's so, it'd be 'their' skin back into the game, there goes some of 'their' liquidity...

isn't it actually an o.k. thing? It's not like it's not already in 'circulation', at least on the books...

at least for now

do i have this right?
 

Someone_else

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#10
Is $75 Billion a lot?
In rough figures, that could buy the last five years of silver, or 50 million ounces (1700 tons) of gold.
 

the_shootist

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#11
Isn't it 'their' money on the line at this time?
No Bail In's so, it'd be 'their' skin back into the game, there goes some of 'their' liquidity...

isn't it actually an o.k. thing? It's not like it's not already in 'circulation', at least on the books...

at least for now

do i have this right?
The people in the Fed don't care. If the US financial bubble bursts they'll simply be on the first plane to Israel to a heroes welcome!!
 

keef

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#12
Is $75 Billion a lot?
Hedge keeps that much under his mattress.

It's a Monopoly Game, you can call the denomination whatever amount you like.

You never ran out of $100 playing Monopoly before?
 

Bottom Feeder

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#14
Thin Aire

humm...
sounds like the name of a nice album
 

keef

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#15
How could anyone ever go broke when you can print your own money?

Paper runs out you just use electrons like scrop said.

Electrons run out, just imagine it to exist and it does!

Even Trump can't bankrupt it. Sound!
 

Uncle

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#16
If you had to spend 1 billion $ over 20 years,

That is

$5703.85 per hour or
$138 888.88 a day, or
$4 166 649 a month or
$50 000 000.00 a year.

75 and I ain't going back to work. OK, make that 1.

Soon we're talking about real money.

Golden Regards
Uncle
 

TomD

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#18
If you had to spend 1 billion $ over 20 years,

That is

$5703.85 per hour or
$138 888.88 a day, or
$4 166 649 a month or
$50 000 000.00 a year.

75 and I ain't going back to work. OK, make that 1.

Soon we're talking about real money.

Golden Regards
Uncle
Hell, that's only $1.58/second, less than $100/minute! Chicken feed until it isn't..
 

<SLV>

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#19
https://www.cnbc.com/2019/09/18/fed...-big-decision-this-just-doesnt-look-good.html

Fed loses control of its own interest rate on day of big decision — ‘This just doesn’t look good’
Published 35 min ago

Patti Domm@pattidomm





Key Points
  • It’s been a turbulent week in the overnight funding markets, where short-term rates spiked to levels of 9 and 10% Monday and Tuesday before the Fed calmed it down.
  • The Fed was forced to do two open market operations to tame the rate move, but its own fed funds target rate, in an unusual move, rose to 2.3% — above the fed funds target rate range it set on July 31.
  • Market pros said the problem came from a cash crunch, not a credit crisis, but the Fed will have to find a permanent fix for it before it impacts the financial system.
  • Fed Chairman Jerome Powell will have to speak on it later Wednesday, when he briefs the press after the Fed’s meeting.




Jerome Powell, chairman of the U.S. Federal Reserve, waits for the start of a House Financial Services Committee hearing in Washington, D.C., on Wednesday, July 10, 2019.
Andrew Harrer | Bloomberg | Getty Images
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.
It’s been a rough week in the overnight funding market, where interest rates temporarily spiked to as high as 9 and 10% for some transactions Monday and Tuesday. The market is considered the basic plumbing for financial markets, where banks who have a short term need for cash come to fund themselves.

The odd spike in rates forced the Fed to jump in with money market operations aimed at reining them in, and after the second operation Wednesday morning, it seemed to have calmed the market.
In a rare move, the Fed’s own benchmark fed funds target rate rose to 2.3% Tuesday, above the target range set when it cut rates at its last meeting in July. The target range is 2 to 2.25%, and the funds rate was at 2.25% Monday.
A second rate the Fed watches, the secured overnight financing rate, or SOFR shot up to 5.25% Tuesday from 2.43%. That is the median rate for $1.2 trillion in short term funding transactions that occurred Tuesday. SOFR affects floating rates on about $285 billion outstanding in corporate and other loans...
 

<SLV>

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#20

<SLV>

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#22
I just found this thread. Will the buck drop against other currencies?
The opposite. There aren't enough dollars to go around. "Lack of liquidity" = more demand than supply.
 

<SLV>

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#23
Time to wrap up this party.

1568826728869.png
 

<SLV>

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#24
Fed initially "injected liquidity" on August 9 of 2007, and the DOW hit a high May 2 of 2018 before the bottom dropped out.

1568827215863.png
 

Buck

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#27
Who would be hoarding dollars?
you've heard warren buffet is liquid to the tune of billions iirc

is that the hoarding you were thinking of?

I'd bet all the companies that are 'cash fat' would fall into that category

but i've been wrong before...
 

<SLV>

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#28

Uglytruth

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#31
Were they false flag pushing for a 1/2% instead of 1/4%?
 

Strawboss

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#32
If you had to spend 1 billion $ over 20 years,

That is

$5703.85 per hour or
$138 888.88 a day, or
$4 166 649 a month or
$50 000 000.00 a year.

75 and I ain't going back to work. OK, make that 1.

Soon we're talking about real money.

Golden Regards
Uncle
Pfft...

I could blow through that in a couple of months...easy peasy...

Prove me wrong...
 

kiffertom

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#33
Hedge keeps that much under his mattress.

It's a Monopoly Game, you can call the denomination whatever amount you like.

You never ran out of $100 playing Monopoly before?
it costs the same to print a 1, 5, 10, 20, 50 or a "C" note! about .04 cents!
 

<SLV>

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#34
it costs the same to print a 1, 5, 10, 20, 50 or a "C" note! about .04 cents!
Printed money in circulation is in decline. It costs $0.00 to create more digital money.
 

Aurumag

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#35
Were they false flag pushing for a 1/2% instead of 1/4%?
That is a rhetorical question, right?

The fed really wants to raise rates while the rest of the world is hovering at, near, or below ZIRP.
 

keef

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#36
Claims it was on Bloomberg, fwiw
Fake news, my friend. This liquidity problem IS systemic and the patient is now back in critical condition / intensive care.

"Normalization'of the fake economy is forever out of the equation and we can now look forward to The Don jumping on Jerome Powell for QE4
like Sargent Hartman on Private Pyle.

1568902612087.png

"WELL, ANYTIME SWEETHEART!!!"

And the Fake News isn't going away anytime soon, either.


So check out someone like Peter Schiff rather than 'mystery trader99 -- so I heard website' if you really want to know the outcome of all this.

 

<SLV>

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#37
IMO James Rickards is the smartest guy out there. Schiff has the right idea, but he has seriously missed some calls in the last decade.

1568907655218.png
 

<SLV>

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#38
Fed intervenes for THIRD straight day. Unclear how long it will continue to do so:

https://www.cnbc.com/2019/09/19/fed...long-it-will-continue-special-operations.html

Fed calms overnight funding market, unclear how long it will continue special operations
Published an hour ago

Patti Domm@pattidomm





Key Points
  • The Fed carried out a special open market operation to add liquidity to the short term funding market for a third day Thursday.
  • Interest rates for short term funding are coming back in line, and the Fed’s benchmark fed funds rate was once more within the range it has set after rising above it on Tuesday.
  • Bond market strategists say the Fed has calmed the market, but it is not yet normal and the question is how long will the Fed have to continue its repo operations.
 

<SLV>

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#39
You feel lucky, punk?

1568908951083.png
 

keef

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#40
"If the market gets through quarter end and it's not too rocky" probably means 'the markets' are totally rigged today, so don't panic.

(Meanwhile, insiders are removing $600 million a day from the stock market and the most CEOs on record resigned last August)



That strategy (fake news) also worked fine for Bear Sterns right before the end, until their forced CDO auction back in June 2007 proved to be the true 'litmus test' of the market.

I don't like rumors either, but I heard on ZeroHedge yesterday that bankers no longer trust the accounting practices of other bankers so one major bank withdrew from the repo market last week. That left a hole in funding that the FED now has to fill.

Portfolios are marked to fantasy today, not to market.

If they allowed real market forces to gain control we could collapse before the end of the 4th quarter.

For what it is worth...
 
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