Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.

Fixed the shitty link.

Explain doom now or doom later

The overnight rate is the interest rate at which a depository institution (generally banks) lends or borrows funds from another depository institution in the overnight market. In many countries, the overnight rate is the interest rate the central bank sets to target monetary policy.


Doom soon

Can you explain why?

I see on your link it says "The repo rate usually trades in line with the Federal Reserve’s target interest rate."

Didn't the fed raise rates similar to the rate on the repo rate chart?

It's a liquidity problem. Soon banks won't trust other banks to repay, and then shit freezes up. It happened before, remember?

What kind of doom? It says the repo rate ensures banks have liquidity. Does this mean that they will be running out of liquidity?

How many months until this occurs approximately?

Go watch The Big Short movie or watch a youtube video of Gregory Mannarino.

Looks like we have until October until it goes up again, if it goes up again.

How long do you think until things start freezing up? Approximately...like weeks? months? a year?

I watch Gregs stuff sometimes, but not every show. I haven't heard him talk about the repo market lately. He usually talks about the bond market and to watch that.

Thanks

The goal of raising rates is to end too much liquidity in the market. thus tampering inflation down to a reasonable level

The problem they are having Is democrats keep printing money to pay for wars for Israel

We are in serious shit..

If I extend the chart to longer time frames, I see in 2007/2008 we got all the way up to around 5.5. In 2019, we got to around 2.5 or so, in 2001 we got to 6.5

Can someone explain why this time is different then 2001 or 2019?

I know in 2008 we had the crash, but what about the other times the rate got out of hand?

If we have to get up to 5-6% rate before we crash, and we stay on the same trajectory, then it seems like we have about 3-6 months till we get to to that point. Is that correct? Or am I looking at it wrong

Those aren't the Jedi we're looking for. Try this.

[link to fred.stlouisfed.org (secure)]

Overnight repo rate is the interest rate at which different market participants swap treasuries for cash to cover short-term cash needs. The repo rate is helping to ensure banks have the liquidity to meet their daily operational needs and maintain sufficient reserves. The repo rate usually trades in line with the Federal Reserve’s target interest rate.

That does not look good...



Last Edited by Oracle Prime on 08/16/2022 04:06 AM

If you look at the 25Y summary on your graph, it seems to be going parabolic.

Select the 5 year scale for the chart.

Then its apparent this is not a big deal, has occurred before and you are fear mongering.

Similar to several previous occasions.

Why must yall keep claiming the sky is failing when your own evidence proves you wrong?

Lmao

Exactly [link to godlike.com (secure)]

How is the blond market? Are they getting more of a premium then usual? Is that DOOM?

2001 was the internet bubble. I nearly went bankrupt because I was so leveraged in the market.

BBBY is about to short squeeze. Previously the problem was GME, look at the chart.

It's all being engineered. You have to crack a few eggs to make an omelette!

Destroy the old system, bring in the new one.

This interest rate is used in agricultural to lock in sales and purchasing 3 months in advance, if I recall correctly. They lock in feed prices, and the sales price per pound of livestock. If the rancher buys or sells on the wrong rate, he stands to lose fortunes.

Shutting down an economy causes bankruptcy.

Why would that scare me? I own my vehicles, and means to protect them

sounds a lot like a q retard. go away

BS

In one night we went from half a point to almost 11% in August 2019.

That was a doom on moment.

This move is nothing and it's reflecting the rest of the rate curve.

Nonsense.

[link to www.goodreads.com (secure)]