This isn’t making much news.
I wonder why ?
Last week, the Fed loaned banks hundreds of billions for their short term, overnight lending ( repo market ) when cash was short and rates shot up to 10%. Now there is a program to extend this lending until October 13 to the tune of $75 billion. A night.
Nobody seems to have a good handle on why this is happening, with explanations ranging from changes to lending and liquidity rules, to recent estimated tax payments ( doesn’t this happen every quarter ? ) to huge deficits.
I wonder why ?
Last week, the Fed loaned banks hundreds of billions for their short term, overnight lending ( repo market ) when cash was short and rates shot up to 10%. Now there is a program to extend this lending until October 13 to the tune of $75 billion. A night.
Nobody seems to have a good handle on why this is happening, with explanations ranging from changes to lending and liquidity rules, to recent estimated tax payments ( doesn’t this happen every quarter ? ) to huge deficits.
