Fed says it will offer an additional $500 billion in overnight repo funding markets

[LiberalArkie]

Source: CNBC

A day after a dramatic move in interest rates, the Federal Reserve on Monday increased the amount of liquidity it’s offering in short-term lending to the financial industry.

In a mid-day announcement, the New York Fed said it will conduct a $500 billion repo operation this afternoon, another move targeted at keeping money flowing through the system. Repo involves banks putting up high-quality collateral like Treasurys in exchange for the liquidity they need to conduct operations.

Monday’s move comes after the Fed stepped up the operations last week, offering up to $1.5 trillion to an industry hungry for the Fed’s offerings.

Read more: https://www.cnbc.com/2020/03/16/fed-says-it-will-offer-an-additional-500-billion-in-overnight-repo-funding-markets.html

[defacto7]

1. The question is, who's buying?

[ashredux]

5. We are....so to speak.

The FED has only so many “arrows “ in their quiver
We may need some “shots” later and they will be empty

[sandensea]

15. It's a ledger entry.

They "print" the money - like the $20 trillion the Fed created to bail out Wall Street after the '08 derivatives debacle.

It may not look good - but Thank Goodness they can still do that without crashing the dollar. Or we'd be in an Argentina situation faster than you can say Tango Foxtrot.

[defacto7]

16. I understand, or maybe I do???

It just seems that the bottom line is, are people buying anything, going anywhere, spending at all? Not much. I suspect that no matter how much you pump the markets it will always fall back to the actual trade between businesses, suppliers, transportation and consumers. If those aren't happening and it's probably not going to increase for some time then I don't quite understand how this will help in the long run. Short stimulus, I get it, worldwide compression, I'm at a loss.

This is something I'd like to understand, it's not my best subject.

[sandensea]

17. It's a BIG indirect benefit for the rest of us b/c it prevents an all-out crash

But yes, it would be nice if the Fed could print some of those almighty dollars to, say, write off student debt, help those who'll lose their jobs due to this crisis with their mortgages, etc.

[defacto7]

22. So do you think if they hadn't sunk that cash into the market

or bought bonds or dropped the rate so low the downward movement would be worse? I think they scared the investors. But pumping it into the public sector? Sounds good to my unprofessional ear.

[yaesu]

2. Those banksters love that socialism when it save's their butts, that money would be much better

spent helping people who are now out of work for the foreseeable future & there are millions of them.

[kairos12]

20. Privatize profits, socialize losses.

[Bengus81]

24. Strangely just like MAGA hat wearing farmers................

[yaesu]

3. and is this on top of the 700 billion they announced yesterday? nt

[wishstar]

4. Situation is even worse than they thought yesterday or they were holding off a bit to prop up today

However a few weeks ago data was reported that businesses and individuals have extremely high level of debt and historically high credit card debt.

[ashredux]

7. Yep...This could get worse then 2008

[Iliyah]

6. And the money is coming from where?

[BumRushDaShow]

8. They keep "throwing money" at something that is not the actual problem

It's useless unless the business take that and pay their employees who will be out of work.

[DBoon]

9. "pushing a string"

didn't work in 1932

Won't work now

[jalan48]

10. How long will having the citizens propping up a failing system work?

[TheFourthMind]

27. Rougly 155 years. 2020-1776 244 - 89 (the years Democrats were in office) 155 n/t

[richdj25]

11. What about those who

lost their jobs and don't have health insurance?

[Iwasthere]

12. Put the money in the people's hands

And NOT a payroll tax! $3000 in our pockets would actually help the markets.

[LiberalArkie]

14. They are putting money in their peoples hands just like the 2008 on did.

The CEO's and banksters came out of it great.

[Cetacea]

19. Yes

Socialism for the corporations and ultra-wealthy is fine.

[beachbumbob]

13. I see close tp $5 TRILLION been fed into markets by the Fed, most likely more

PPT has NO oversight by Congress and it all saddles the treasury

[IronLionZion]

18. Everything is A-OK. This is all just a liberal hoax

I suspect a lot of Dolt 45's dumber supporters were buying high before the crash.


Damn I wish Obama (or Biden) were leading this country now. Sensible people would feel much more reassured.

[JT45242]

21. Liquidity is not the problem

I heard multiple experts on NPR and MSNBC over the weekend say that liquidity isn't the issue. There is plenty of liquid money already out there. Dropping the interest rates and doing this won't change anything.

These are moves to give tRUMP the opportunity to say that he is doing something. Not the 'somethings' that will make a difference to flatten the curve and save lives, but something.

This is more of rearranging the chars and polishing the brass on the titanic.

Grasping at straws to try to prevent the collapse of the stock markets.

[Bengus81]

23. Romney now proposing $1,000 to every adult

Let me guess what Turtle and other Pugs will say--SOCIALISM at it's WORSE!!!

[yaesu]

25. 20,186.48 −2,999.14 (12.94%) nt

[Under The Radar]

26. Extend unemployment benefits for those who get sent home

And make the application process streamlined and no waiting period.
- A stay on cut offs and evictions
- No patient turned away despite coverage.
- Open the food programs back up immediately

There is a model for crisis management that was put in place by the Obama Administration, except this time the banks need no money.