http://investmentresearchdynamics.com/a-liquidity-crisis-hit-the-banking-in-september/
Something occurred in the banking system in September that required a
massive reverse repo operation in order to force the largest ever
Treasury collateral injection into the repo market. Ordinarily the Fed
might engage in routine reverse repos as a means of managing the Fed
funds rate. However, as you can see from the graph below, there have
been sudden spikes up in the amount of reverse repos that tend to
correspond the some kind of crisis – the obvious one being the de facto
collapse of the financial system in 2008:
No comments:
Post a Comment