Banks and hedge funds drained $1.2 trillion from Reverse Repo’s in the past 6 months ago. It’s projected to run out by March, taking away one of the pots of cash Wall Street uses to buy up federal debt. Washington needs $10 trillion this year between refinancing and fresh deficits — almost half the assets in all commercial banks. With everybody selling — China, Saudi, Japan, even the Fed — where will they find it? – FX Hedge. The 2 trillion dollar pot of cheap money known as Reverse Repo is draining at lightning speed — down $1.2 trillion in just 6 months. Will Wall Street be scrounging through the couch cushions to finance Washington’s deficits?
The 2 trillion dollar pot of cheap money known as Reverse Repo is draining at lightning speed — down $1.2 trillion in just 6 months.
Will Wall Street be scrounging through the couch cushions to finance Washington’s deficits? pic.twitter.com/afyN3R34rw
— Peter St Onge, Ph.D. (@profstonge) November 22, 2023
The dollar has been held up artificially for the last 6 months, reverse repo’s and the paper manipulating markets on Wall St.
But it has ended and the dollar broke to a new low😃
Precious metals Gold and Silver should rise… pic.twitter.com/I7x0QSX9uX— Persona non grata🇬🇧🇷🇺🇭🇺 (@Silverfox6158) November 20, 2023
Once the Reverse Repo buffer is gone there are only two options, either Fed finishes QT or the amount of Debt that will flood the market will make yields soar and tank the market
Thus, seems like it is either QE or Crash soon? pic.twitter.com/IgfXBMWoIU
— BullishBecker (@BullishBecker) November 19, 2023
One of the last pots of cheap money on Wall Street, Reverse Repo’s, has been draining by $200 billion per month. It’s expected to run dry by March. The Treasury almost blew a debt auction two weeks ago. This suggests cash is scarce and the US govt is selling too much debt too quickly for the market to absorb. With Washington trying to sell trillions of $$$ in debt this year alone, we could see a lot more. – Wall Street Silver
- People have no idea of the financial games done to keep “things afloat”. 95% probably still have no idea of what really happened in the 2008 crisis…and here we are again. – Floridanow1
- Wasn’t shift out of reverse repos into T-bills expected? Right now one-month T-bills are 5.085% and two-month bills are at 5.15%, higher than the RR rate. But… those yields also reflect expectations of higher rates as the Fed continues to tighten. So… raise or no in future?? – Jason Premo
- This money printing is not going to end well. Banks are definitely not in a good situation if rates continue to rise. Their bond holding are already 30-40% underwater. They say they have “derivatives” to offset this….we will see. Trung Anh
- With the Treasury looking to auction off another $1.5T+ of debt by March,and less than $1T left in the Reverse Repo Facility, things could get…spicy soon. – James Lavish
- Reverse Repo is Crashing – Citizen Watch Report
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