FED Bails Out Repo Market with $75 Billion | Is the financial system insolvent?

I hope you all found this topic interesting. I really tried to maintain a non-biased view on the topic, as it's always important when analyzing these type of topics. But if one thing is for sure, this may very well speak to a serious set of issues in the financial system. In a world of negative yielding bonds, null economic growth after trillions in stimulus, and the powers that be using every single means to prolong the inevitable, it wouldn't shock me that the dominoes are starting to fall. This could be an early warning sign.

Excellent video Nick. You are one of the best presenters on YouTube.

I love this type of vids!

I wish someone could say which bank/s needed the injection? I suppose if the people knew which bank/s then may cause bank run causing collapse

They will keep doing it.

I have saved up some money, should I switch to bitcoin?

It's even worse than you described. It's not just $75B on one day, it was $53B the first day, $75B the second day, $75B today, and they're planning on up to another $75B tomorrow (Friday), for a total of $278B in 4 days. You bring up a good point though that we don't know what kinds of securities the Fed is buying (treasuries or risky things) or for how long. However, we do know they're dumping large amounts of new cash into the system, effectively devaluing the dollar until the repos are reversed AND if they remove the cash afterwards. The Fed has also talked about possibly making these large-capped repo operations permanent. Something is very fishy here.

Thanks for the content.

"The strains in the money markets reflect forces that we saw coming, and they just had a bigger effect than I think most folks anticipated: strong demand for cash to purchase Treasuries and pay corporate taxes." – Chairman Powell
Banks are selling their treasuries for cash desperate for liquidity, not to purchase treasuries. Is he serious?

It is not the function of the Federal Reserve, nor the TARP funding by Congress, to bail out investment banks (stock underwriters), it was to save the commercial banking system from collapse in order to prevent every business’s and person's bank account from evaporating. That why Bitcoin which is limited in supply and based on ‘supply and demand’, it is designed to be inflation resistant, thus allowing its value to increase based on its immediate demand for it or good example, the Tael project (https://blog.taelpay.com/our-ecosystem-detailed-actors-in-the-ecosystem/) where the ecosystem reduce the circulating supply in the market when new customer hold it

small amounts, 75 billion… that's a good one. hold on to your asses shits gonna get real

None of them are borrowing each other hording their liquid cash, waiting to buy bitcoin on 23 ?.

Thank you for the truth. This crash can not be stopped. Pray and hold on to your butts.

This is a great video. Thank you for posting. I just found you by searching youtube "repo $75 billion". I am now subscribed.

Sounds like a sideline move. When $ is collected on collateral the Fed isnt just going to burn the 75 billion. It will dilute the value of the dollar, and big banks get an early bailout…sickening!!

Solid video!

Buy BITCOIN GOLD SILVER and start PREPPING !

Ba BOOM is coming. All the Lord GOD has to do is place fear in the bankers hearts and the total and epic collapse will begin.

Thanks for breaking this down in a digestable way for those of us like me to whom finance is usually no more than esoteric gibberish.

yo nick, can you touch on the best way to get USD into crypto. I'm sick of getting screwed by Coinbase and was wondering if you knew of a cheaper way

DataDash. Federal (!?) Reserve! Watt a Laugh. Electrifying, hence watt.
Federal reservebank bank has no connection to government. Government has no connection to federal reserve bank.
Perhaps rename to BANKERS OWNED BANK!?
Federal reserve, misleading name!?

I want to recommend the tales from the crypt podcast episode with raoul pal, very interesting!

Excellent analysis once again! TY

They're paying off bad derivatives, it's probably terrible COLLATERAL

I'm pulling my $37.50 out first thing in the morning

XRP

Some large entities, maybe sovereigns, are dumping their UST's. A coordinated effort perhaps? Either that or the Mnuchin stock deal cannot be fulfilled.

GREAT VIDEO i have know this for years back in the 70's when bank rates where 21%

The Fedearl Reserve has injected over $100 billion into the financial system in the last 48 hours.That is more than 50% of the total market cap of Bitcoin.
Rather than fix the structural issues, they keep trying to print their way out of the mess.
Bitcoin rocket fuel

This was excellent Nicholas! Such a clear explanation. Please keep rambling on!!!!!!

liquidity has dried up in the overnight money marketsThe banks desperately needed liquid cash to trade and lend each other overnightThe first warning sign came as the overnight interest rate shot up to 10% (up from the typical 2%The Fed had to step in to ease the liquidity crisis

Might be worth while comparing dates of the Bear Sterns collapse with a fibonacci ratio eg 1.685. If it correlates then you know AI is pulling the strings.

How the hell can this video get a thumbs down.. Most humans are so stupid..

Nickolas, Thank you so much for your insight

Nick would you be able to explain the difference between the Fed Funds Rate and the Repo Rate? Great video as always!

I’m not sure why the spike in repo rate that happened in Dec ‘18 should calm fear. That was the worst December since the Great Depression

Not everyone will become Japan imo. Some will actually become worse. Japan is a producer and a creditor nation. U.S. is the worlds largest debtor nation

Thank you! Great content

Anthony, you made some great point,s..not to worry, and again Muchas Gracias Amigo !..from Chile

BUY BITCOIN ????

Ur too long winded..get to the point!!

When we have this next crash, supply trucks will stop delivering. Stock up while you can.

Vid excellente ?

Stack more sats and HODL. The current economic system seems hellbent on getting Bitcoin to the moon.

Propping up the markets is not going to work forever.
QE would have worked far better to stimulate the economy if they gave the cash to the public yet they are repeating the same nonsense, giving money to the idiot banks who will again fail too spend it as they should – Its just going to make the crash even worse – it will happen.

Fuck these banks and all the corruption they have saddle us all with there illegal crimes against the rest of us.

The confidence of an entire generation was destroyed. Nobody wants to borrow $, imo.

Nick, here's a twitter thread where I was given a pretty good explanation as to the difference between QE and these Repo Loans

https://twitter.com/Jonathankrier1/status/1174354108502794240?s=09

Ultimately, I think this is a sign of bad things to come..

They just swapped sub prime mortgages for sub prime auto loans

Very interesting and informative. Calm and brilliant. Thank you