Thursday, September 19, 2019

Liquidity of the stock market

It was not too good a few days ago. It got so bad that the major Wall Street banks could not, or would not, handle the demand for loans called overnight repurchase agreements (repos). The Federal Reserve Bank of New York had to jump in and infuse $128 billion into the repo market, even though the four largest banks on Wall Street hold more than $5.45 trillion in deposits when only $53 billion was needed to cover the overnight loans.

Shades of The Great Recession?

1 comment:

sdevito said...

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