The Bob Davis Podcasts

US-Debt-Kills-Repo-Markets?-Bob Davis Podcast 885


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Pay Attention To This Issue
My job is to bring new issues to the attention of subscribers and listeners. That’s why I sat down Saturday and recorded US-Debt-Kills-Repo-Markets?-Bob Davis Podcast 885.
Repo Market Hell
First of all I am not a banker but I stay current on financial news. Especially relevant are the concerns experts are voicing about something called the Repo Markets.
Not Where Your Car Goes When It’s Repossessed
In US-Debt-Kills-Repo-Markets?-Bob Davis Podcast 885 I’ll provide a definition of these markets. I’ll also explain ‘Repurchase Agreements‘.
Key Markets For World Banking Liquidity
Just remember, these markets are instrumental in keeping the world’s banking system afloat on a day to day basis.
Drying Up Like The Dust Bowl
That’s why it’s most noteworthy the repo markets unexpectedly started to dry up in the fall.
Fed Rides To The Rescue…Again
The drought forced the United States Federal Reserve Bank to dump billions into these little known markets.
Billions
More billions than the banking experts expected.
More Billions
320 Billion since last fall.
Even More Billions From The Fed
Even more the Federal Reserve has projected dumping as much as another 500 billion into these markets in 2020.
Whistling Past The Graveyard
Why? According to some, the Fed wants these markets, largely based on United States Treasury Bonds, to stay open and liquid.
Big Federal Deficits Finally Taking Their Toll?
After all, the federal government has ever larger budget deficits and debt to finance.
Trillions of Dollars of Debt Gotta Go Somewhere
Now hold onto your hats. The federal government has been dumping US Treasuries on these markets in 2019, in increasing amounts. After all, they have a now trillion dollar budget deficit to cover.
Rumors Of Bank Failures
Other supposed reasons for the problem include rumors of a big European Bank in trouble.
Could Be The Hedge Funds
Some blame the big hedge funds.
Or, Hedge Funds Are Saving Our Asses
Others say there’s so much federal debt out there, the hedge funds are saving our asses right now.
Regulations
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