Did something break in the banking system? Massive repo move signals risk spike
- By : JanssenReportHost
- Category : Banks, Markets
Today on the Janssen Report: does this 0.4 trillion dollar repo move signal a big problem in the banking system? The Federal Reserve just injected a massive amount of Treasury collateral into the repo market which might be needed by banks to hedge a sudden increase in risk in for instance derivatives.
What does this mean?
According to Investment Research Dynamics (IRD):
What’s eerie about the pattern in the graph above is that since 2014, the “spike” occurrences have occurred more frequently and are much larger in size than the one in 2008. This would suggest that whatever is imploding behind the scenes is far worse than what occurred in 2008. […] Without a doubt, the graphs above are telling us that something “broke” in the banking system which necessitated the biggest injection of Treasury collateral in history into the global banking system by the Fed.
Watch this episode of The Janssen Report here:
Also check out these sources:
- Mike Maloney’s “Bernanke Bust”: http://goldsilver.com/video/banking-crisis-bernanke-bust-is-here-mike-maloney/
- Original article on Investment Research Dynamics (IRD): http://investmentresearchdynamics.com/a-liquidity-crisis-hit-the-banking-in-september/
- And also on IRD: http://investmentresearchdynamics.com/something-blew-up-in-the-global-financial-system/
Be on your guard – we are seeing more and more instability in the global economy! Something is coming up…
Cheers,
Marco Janssen
The Janssen Report