It was really creepy to hear this report on Bloomberg radio this afternoon. Hosts were clearly confused and scared.
"The Federal Reserve on Wednesday cut interest rates again by 25 basis points to a new target range of 1.75% to 2%, and telegraphed a strong likelihood of one more rate cut by the end of the year." #StrongEconomy
https://www.wsj.com/articles/fed-to...epo-transactions-in-several-years-11568729757 Doesn't add anything new, but it does cover the situation. The issue is if the repo market seizes without bad reason, what happens when it seizes during a situation? They don't go into the 2008 disaster, but it was the panic on the repo market that caused a seizure in the overnight credit market, rippled across everything else, and triggered death spirals to now cash hungry companies. It'd be like someone not carrying much cash after eating at a fine restaurant, only to realize that credit/debit cards and e-payments are down. You can walk to the bank, except the lines started to wrap around the building. This doesn't happen anymore because the FDIC insures each of your account 150k. Try as the Fed might, there's no piggy bank big enough to resolve the money being passed around the overnight lending market. Banks might hoard their money piles sooner and swifter than what main street realizes.
Do you remember when Obama stated that 3% GDP growth for 4 consecutive quarters is an unattainable goal and Trump retorted about how it's going to be so easy for him to do it and his supporters bashed Obama for saying that? What is more hilarious is that his supporters believed that he kept his promise by having SINGLE quarters above 3% GDP growth which happened plenty of times under Obama also.
What happened to Trump's promise of a full year of 3 plus percent gdp growth? Weren't a bunch of conservatives making fun of Obama stating that's unattainable?
Fun with Bob Murray: John Oliver, HBO Score Legal Victory Over Coal King: First Amendment Protects “Geriatric Dr. Evil” Jab https://www.washingtonpost.com/news...-a-geriatric-dr-evil-a-judge-tossed-the-case/ You can watch the segment at the link, good stuff.
Lol biz blames everything even after a 1,000,000,000,000 dollar tax cut aimed at them and their execs.
