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Off The Cuff: Understanding The Trouble With Repo Rates

Summary:
In this week’s Off The Cuff podcast, Chris and Wolf Richter discuss: What is the repo rate? Why did the rate suddenly skyrocket? Why a liquidity crisis is so dangerous Will the Fed really start up QE again? Something completely unexpected happened this week. Banks started running out of cash reserves. As a result, the cost for them to borrow money overnight — the repo rate — suddenly skyrocketed, taking the banking system and the Federal Reserve by surprise. While the situation appears under control for now, it is not a good sign nor a healthy one for the financial system. Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio as well as all of PeakProsperity.com’s other premium content. Or Sign In with your enrolled account. The post Off

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Off The Cuff: Understanding The Trouble With Repo Rates

In this week’s Off The Cuff podcast, Chris and Wolf Richter discuss:

  • What is the repo rate?
  • Why did the rate suddenly skyrocket?
  • Why a liquidity crisis is so dangerous
  • Will the Fed really start up QE again?

Something completely unexpected happened this week. Banks started running out of cash reserves. As a result, the cost for them to borrow money overnight — the repo rate — suddenly skyrocketed, taking the banking system and the Federal Reserve by surprise.

While the situation appears under control for now, it is not a good sign nor a healthy one for the financial system.

Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio as well as all of PeakProsperity.com’s other premium content.

Off The Cuff: Understanding The Trouble With Repo Rates
Or Sign In with your enrolled account.

The post Off The Cuff: Understanding The Trouble With Repo Rates appeared first on Peak Prosperity.

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