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BREAKING: The Fed is sharply increasing the amount of help it is providing to the financial system
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[quote:Anonymous Coward 76490798:MV80MTcwODEwXzc1ODA5ODU0X0M4NzIyMkIw] Wondering what you folks think of this reasoning. I pieced this together from various things Greg Mannarino has said in his video updates the past few days, but not sure if he would veto this way of putting things together. 1. Greg says the economy is in "meltdown" or "free-fall" and regular people are now borrowing against their credit cards in record numbers just to make ends meet. 2. He also says that the Fed is making this money available to the banks at close to zero (or less than zero) interest, so that the banks can then turn around and lend the money to us peasants at huge interest rates, such as what we see on credit cards. 3. Evidently the level of corporate debt is also extraordinarily high right now, which suggests that companies are borrowing large amounts in order to stay afloat. Is it possible that we are seeing the economy in meltdown, both from a corporate and an individual perspective, but the Fed is trying to hide that fact for a while? It creates money and lends it to banks, who then turn around and give that money to companies and people to keep them just barely solvent for a while, but at the cost of becoming deeply indebted. Under such a scenario the pundits could continue claiming that the economy is "booming" and the consumer is "strong", because us little people can't see what is really going on behind the scenes. Each person in isolation thinks it is just them that is suffering, but really it's almost everyone. This could presumably continue for a while, as the global central banks maneuver themselves into the best possible position before cutting off the spigot of "liquidity". At that point, every indebted company and individual household will be simultaneously bankrupted, and all collateral assets will transfer to the central banks. That is, endgame. Going against this logic however is the fact that money velocity is at an all-time low. If the money from the Fed was being dispersed to companies through loans and to individuals through credit cards, wouldn't we see the money velocity go up, potentially sparking hyper-inflation? Thoughts? Does this make sense to you folks? I don't know if it's right or not, just trying to understand what's happening. Thanks. [/quote]
Original Message
Why is this not major headlines?
Why is Trump not mentioning?
What really is going on here...
BREAKING
The Federal Reserve is ramping up the amount of temporary liquidity injections it is providing for overnight lending markets.
Starting Thursday, the repo operation offerings will escalate to $120 billion from the current $75 billion as the central bank continues to calibrate the right amount of funding needed to keep the markets operating properly and to hold the overnight funds rate within its target range.
The announcement came from the New York Fed,
which did not elaborate on the reason for the increase
. However, it comes a day after the Fed injected just shy of $100 billion into the system via an operation where it provides banks with cash in exchange for high-quality assets like government bonds.
...
In addition to the repo increase, term repo operations are rising to $45 billion, from $35 billion.
In addition to those two operations, the Fed recently announced a permanent operation that will target $60 billion a month initially in bond purchases that will resemble the three rounds of quantitative easing employed during and after the financial crisis.
[
link to www.cnbc.com (secure)
]
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