This page has been archived and commenting is disabled.

General Collateral Has Just Been Demoted To Private, First Class As Repo Market Grinds To A Halt

Submitted by Tyler Durden on 08/01/2011 10:46 -0400

No, there is no problem with the repo markets. None whatsoever. Absolutely none. Oh, uhhh, wait a second...

- advertisements -

Mon, 08/01/2011 - 10:47 | 1512543 cossack55

Repo this, Bitchezzzz!!!!!

Mon, 08/01/2011 - 10:53 | 1512567 FEDbuster

Barry, Timmy and Benny better double up their Depends today.

Hasten the Collapse, OBAMA 2012

Mon, 08/01/2011 - 11:00 | 1512612 Mr Lennon Hendrix

Where is Ben? Shouldn't he be in this market right now? Oh, Benneh? Benneh?

Mon, 08/01/2011 - 11:24 | 1512708 TruthInSunshine

Repo Men II; Let Them Eat Johnny Cake: Green Shoots & Reccovery Summers, A Keynesian Love Story

Starring Ben S. Bernanke, William Dudley, Jeane-Claude Trichet, Angela Merkel, Nicolas Sarkozy & Timmy Geithner

Mon, 08/01/2011 - 11:06 | 1512641 BaBaBouy

BaBa says GOLD is the only answer right now to this Corrupt Festering financial Quagmire, that has been laid upon us by...

Mon, 08/01/2011 - 11:22 | 1512704 Bee1000

Shortest gold correction ever?

Mon, 08/01/2011 - 12:13 | 1513012 Cast Iron Skillet

Gold uncorrected beyond my expectations ... I wanted to BTFD.

Mon, 08/01/2011 - 11:10 | 1512661 BaBaBouy

Looks Like the "Cool-Aid" isn't working ...

Mon, 08/01/2011 - 10:49 | 1512554 TGD.Redux

excellent article on the topic here

http://www.huffingtonpost.com/andrew-reinbach/default-or-no-real-econom_...

Mon, 08/01/2011 - 11:35 | 1512767 redpill

That article is complete bullshit. It's a lib whiner complaining we aren't keeping the ponzi scheme going full speed.

Mon, 08/01/2011 - 10:49 | 1512555 Cursive

This will have exactly zero effect on interbank liquidity, according to Benron. Everything is taken care of, so just BTFD.

Mon, 08/01/2011 - 10:52 | 1512569 Quintus

If anything goes amiss, he can probably fix it in 15 minutes anyway.

Mon, 08/01/2011 - 11:16 | 1512680 buzzsaw99

+1 transitory

Mon, 08/01/2011 - 10:53 | 1512575 Theta_Burn

Closed my FAZ position, when that vote comes in YEA, watch the 200+ pop.....

Mon, 08/01/2011 - 11:14 | 1512676 buzzsaw99

robo?

Mon, 08/01/2011 - 10:54 | 1512577 GeneMarchbanks

Subzero. Ice age a comin.

Mon, 08/01/2011 - 10:54 | 1512578 mourad88

Guns, gold, and bitchez, bitchez!!

Mon, 08/01/2011 - 10:55 | 1512583 Dr. Engali

Everything is okay folks. Uncle Ben has everything under control. Just roll over and go back to sleep. Maybe watch some American Idol. You'll feel wealthier in the morning.

Mon, 08/01/2011 - 10:55 | 1512584 Cassandra Syndrome

No grease for the Skynet Cyborgs to function?

Mon, 08/01/2011 - 10:56 | 1512592 cswjr

Better wash that discount window. Company's comin'.

Mon, 08/01/2011 - 10:56 | 1512593 slaughterer

Last week when ZH reported on repo, it was not so bad. Now it is becoming clear that the repo market is breaking down.

Mon, 08/01/2011 - 10:57 | 1512594 wombats

For the uneducated, unwashed masses, what is the Repo market and what does this graph indicate?

Thanks

Mon, 08/01/2011 - 10:59 | 1512607 snowball777

You can think of it as the pawn shop for short-duration cash loans to the big boys; the graph indicates that credit markets are seizing up just like in 2008.

Mon, 08/01/2011 - 11:01 | 1512617 Larry Darrell

http://en.wikipedia.org/wiki/Repurchase_agreement

Mon, 08/01/2011 - 11:02 | 1512621 Cassandra Syndrome

Snap!

Mon, 08/01/2011 - 11:13 | 1512672 mortiis

You mean the "Supplemental Nutrition Assistance Program?" :-)

Mon, 08/01/2011 - 11:01 | 1512618 Cassandra Syndrome

This link here gives a decent synopsis on it

http://en.wikipedia.org/wiki/Repurchase_agreement

Mon, 08/01/2011 - 11:03 | 1512626 Ponzi Unit

http://wfhummel.cnchost.com/repos.html

Mon, 08/01/2011 - 11:08 | 1512651 Dr. Engali

Nobody wants to take somebody else's crappy collateral for a short term loan.

Mon, 08/01/2011 - 10:57 | 1512596 snowball777

http://www.youtube.com/watch?v=XOWnUYpBQD8

Mon, 08/01/2011 - 10:59 | 1512602 Cassandra Syndrome

SPX 500 about to breach 200 DMA support again

Mon, 08/01/2011 - 10:59 | 1512603 slaughterer

SHTF: Once USRGCG1T breaks .40...

Mon, 08/01/2011 - 11:00 | 1512613 Quintus

Why .40 specifically?

Mon, 08/01/2011 - 11:00 | 1512608 bania

looks like traders are calling on their inner Waddell & Reid today

Mon, 08/01/2011 - 11:00 | 1512609 Tense INDIAN

thats one thing clearly going UP after a long time...so something must be BAD....

Mon, 08/01/2011 - 11:00 | 1512611 RobotTrader

30-yr. below 4% by the end of the day?

Heh, before you know it, BAC, JPM, WFC will be offering McMortgages at 3%.

LOL...

Mon, 08/01/2011 - 11:02 | 1512620 Quintus

I think the point is that if there is no interbank liquidity, there will be NO mortgage lending. Or banks.

Mon, 08/01/2011 - 11:04 | 1512633 lieutenantjohnchard

poor 'tard. his legs are worn out from taking his victory lap last night, to go along with the usual gentleman jim sinclair bash, only to find the fan blowing poofter back in his face.

as ever, gentleman jim sinclair sends the warmest of regards from $1628 to you.

Mon, 08/01/2011 - 11:26 | 1512721 SheepDog-One

Momo should just invest it all in the Eberhard eraser company, as many erasers as he wears out reversing all his paper trade calls he's their main consumer.

Mon, 08/01/2011 - 11:47 | 1512843 lieutenantjohnchard

lol. that way he can become the legend in his own mind.

Mon, 08/01/2011 - 11:06 | 1512639 Mr Lennon Hendrix

You never mention COG. Look at that fucker go! It makes sense, considering the Cabots can talk to god.

Mon, 08/01/2011 - 11:21 | 1512697 snowball777

And they thought all those guys in green uniforms were in Boston for an offensive. LOL

Protect the silver, Mumsy!

Mon, 08/01/2011 - 11:10 | 1512662 sabra1

then you'd be able to get out of living in your car, which was parked at starbucks for the free wifi, and back into mommas basement!

Mon, 08/01/2011 - 11:29 | 1512740 SheepDog-One

Now Momo is suddenly a 'Bond dork'? Gee have you stocked up on lots of bow ties yet?

Mon, 08/01/2011 - 11:03 | 1512625 Josh Randall

If this weren't so comical I'd be crying like Dick Vermeil right now

Mon, 08/01/2011 - 11:03 | 1512628 Cdad

Transports are about to crack...200 day. The IYT is already there. I'm sure this will go nicely with bank liquidity problems.

Mon, 08/01/2011 - 11:04 | 1512631 Jacopo

Calm down. Overnight is generally tight today. Term repo is high but not hyperbole. Libor is just living in another space.
didn't they teach that in finance 101: overnight is the most volatile rate??

yeah, just think back a month or so when 2s,3s and 5s were trading at -40bp in o/n repo. That was some nice carry holding this paper. Ah, those good old times

Mon, 08/01/2011 - 11:07 | 1512647 Cone of Uncertainty