ES -- DX/CL -- isee -- cboe put/call -- specialist/public short ratio -- trinq -- trin -- aaii bull ratio -- abx -- cmbx -- cdx -- vxo p&f -- SPX volatility curve -- VIX:VXO skew -- commodity screen -- cot -- conference board

Friday, October 10, 2008

 

$2.5tn in repo fails


stunning. more from ft:

SJ:
Right - so when the fed conducts its money market ops it lends tbills in repo auctions to primary dealers
SJ:
who then re-repo the tbills to other banks
SJ:
the problem is that those other banks aren’t honouring their commitments to return the tbills to the primary dealers on time
SJ:
because they’re hoarding liquidity
SJ:
its a liquidity trap
SJ:
in turn, the primary dealers aren;t lending out the tbills anymore
SJ:
and so that’s why, in spite of huge increases, a lot of the central bank money market ops aren;’t being covered
SJ:
because the primary dealers don’t want to re-lend the tbills
SJ:
it’s a disaster anyway
SJ:
never been this bad
SJ:
but you all knew that anyway

Labels: ,



This page is powered by Blogger. Isn't yours?