“We have entered a new stage which feels like one of the end stages of this process... when governments just give up and don’t even pretend to try and control their finances anymore..."
It’s becoming an example of poor parenting. At some point, we all need to try to ride the bicycle without a smothering presence running alongside and holding the back of the seat...
...either the world blows past climate targets and hurtles toward catastrophe, or governments crack down on oil and gas, upending assets currently worth hundreds of billions of dollars.
The total overnight and term Fed RP operations on Friday were greater than on year end! On year-end, the Fed had pumped a total of $255.95 billion into the market verses $258.9 billion on Friday.
...“this time” is only different from the standpoint the variables are not exactly the same as they have been previously. The variables never are, but the outcome is always the same...
For the Fed to end daily RP ops, they need outside cash to come back into the Repo market. For the Repo market to attract cash, Repo rates need to move higher. For rates to move higher, the Fed needs to stop RP ops.
