Repo: How Roughly $1 Trillion Moves Overnight | WSJ

The repo market shook the financial world in September when an unexpected rate spike choked short-term lending, spurring the Federal Reserve to intervene. WSJ explains how this critical, but murky part of the financial system works, and why some banks say the crunch could have been prevented.

Illustration: Jacob Reynolds for The Wall Street Journal

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19 thoughts on “Repo: How Roughly $1 Trillion Moves Overnight | WSJ”

  1. this is a stupid country,
    almost everyone gets a gun, yet
    almost everyone gets robbed everyday…
    folks, don't fight, just commit suicide!

  2. So banks are basically to the point where they risk over-extending themselves and they want to use their reserve money in the meantime? Makes total sense. Short on cash? Just keep dipping into your savings!

  3. Mr. & Mrs Smith

    Wha-?? The imaginary house of cards that is our “economy” is fragile and could collapse without government constantly propping it up??
    Who would have ever imagined….

  4. When repo has a lot of risks it is because of the lack of trust
    So the fed provide the trust telling everybody that our world will not end
    If is money what they want give them The money

    Fed does not provide finance
    It provide marketing and with marketing comes trust

  5. K. Chris Caldwell

    The so-called repo market is a integral component of the Khazarians' grift-machine. It's accounting fraud, and a kind hot-potato game of fraud at that.

    Firms playing this fraud game borrow funds very short-term so as to appear more viable than they are. Repo interest rates go up when more and more of the game's players become concerned about getting burned. The center of the grift-machine, the Federal Reserve, has stepped in, and is manufacturing and distributing more theft, fiat-money, to keep the game going.

    The Khazarians are determined to keep the illusion of a healthy economy going util they finish their war with and decimation of Iran.

  6. TheLostSingles

    This is mainly the European banks using their US counterparts in the repo market because of negative interest rates in Europe. There is a growing lack of trust among European banks and it will spill over into our credit markets faster than the Fed can balance it. This is the tip of the mother of all financial meltdowns iceberg. More to come in 2020 and beyond. The central banking cabal is trying their hardest to hide this brewing crisis.

  7. Marco Aurélio Toledo Angioluci

    LCRs exist in Brazil since 2002. It՚s also worth noting that even prior to implementing
    LCR requirements to the most systemically important

    banks in Brazil in October 2015, the Central Bank of Brazil has been monitoring the liquidity risk incurred by all the Brazilian banks on a daily basis since 2002. This liquidity monitoring process is performed by means of an indicator conceptually similar to the LCR denominated Liquidity Indicator (LI).

  8. When fed says they would buy the treasury debt, that means they would print more money to keep the system floating!

  9. One would think that in the year 2019 people would finally stop making up conspiracy theories about inherent evilness of central banks or that they would stop blabbering about fiat currencies and how they have no value compared to gold. But no. The same thing over and over and over again until your eyes and ears start to bleed. For me, when I see a video like this, I immediately feel amazed that there is such an efficient and yet hidden system in place, that basically keeps the whole world economy flowing without regular people knowing anything about it. Great stuff

  10. "As you cam see on this chart"…pulls up some vague B.S chart for a few seconds like that "explains" anything.

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