This is how The Repo Crisis is Getting Worse It looks like the taxpayers are on a proxy spending spree again. The repo market is in total chaos. Is the repo market the canary in the coal mine, signaling the next financial collapse? The new repo market timeline that proves this crisis is NOT going away is revealed, right here, right now! Don't be caught off guard like so many before Lehman Brothers went bust. Watch this video to the end , to make sure you have all the most recent intel on the repo market bailout (QE4). It is crystal clear that the corrupt Fed needs to be audited again. The last time the Fed was audited, they've found 16 Trillion damage not reported to the public that the Fed gave away to the big banks and corporations for the bank bailout of 2008. Do not underestimate the Fed and Treasury. These corrupt people are capable of printing unlimited amounts of paper, and at this moment, they are anxious and concerned that their crooked elite-super-rich favorite candidate trump could end up losing the next presidential election. So they will continue to print re and more. Welcome to The Atlantis Report. It all started in mid-September when overnight, the rates in the repo market skyrocketed by an unheard of 400%! The Fed stepped in and injected liquidity like they always do, which is a fancy way of saying they printed more money, which will cause future inflation and widen the wealth gap, and gave it to the banks and financial institutions. Of course, Jerome Powell came out and said the repo market crash was nothing more than a "glitch" and was only temporary. In other words, nothing to see here, move along. But you know from watching my videos, once they started QE, they can never stop, and this was the latest round (QE4). But Jerome Powell was adamant that what the Fed was doing in the repo market was NOT QE. Even though that was the exact textbook definition. Why will the Fed never admit the continued repo market bailout is QE? Because by admitting they have to start QE again, they're admitting QE 1,2, and 3 failed. The market would then lose confidence, and we all know the entire economy is built on debt, asset prices, and trust. So the temporary "glitch" in the repo market has now turned into something far more permanent. So let's look at the timeline of the Fed's continued bailout of the repo market. Is this the next financial crisis canary in the coal mine? Does it have anything to do with the housing bubble 2.0? Is the repo market chaos trying to tell us the underlying system is failing? The federal reserve stopped intervening in the repo market in 2008 (when Lehman went bust). Now, 10+ years again, they've started to intervene again. First, the Fed told us it was only a temporary glitch. Of course, now they've changed their tune. They've had to continue this repo market QE4 since the "glitch" in September. In this video, I specifically discuss: How the repo market works. What the repo market problem was. And what were the excuses the mainstream media gave? So is The repo Crisis Getting Worse? Yes, absolutely; it is. And here's a timeline of the feds repo operations per their website. You can check it out at the New York feds website for yourself. Initially, they came out and made these announcements on September 20th. This wasn't when they started the repo operations just when they announced it on their website. They said that they're gonna do these term repos, which means that repos have a specific date on them of 30 billion-plus. And that's going to end October 11th. The overnight repos, that's just that overnight transaction is going to be 75 billion-plus that would extend to October 10th. Well sure enough on October 4th they came out and they up the term loans from thirty to thirty-five to forty-five billion, and they're doing it till the end of October. So you see what's happening; the amount of money is increasing, and the length of time that they're committing to is also growing. It is going to the overnight repos that are still at seventy-five billion-plus. But now they've extended that from October 10th to November 4th. They then came out on October 11th and said, okay, we're keeping it at thirty-five to forty-five billion-plus for the term repos ; but we're extending it to January. So from the end of October till January. And they're keeping it seventy-five billion-plus for the overnight transactions. And they're extending that to January as well. One thing that shocked me when I was actually reading this; because I haven't really heard this anywhere in the media; they said that they were starting to buy sixty billion worth of Treasuries beginning on October 11th. This is huge. The reason why technically they're doing repo operations, which means they're buying that collateral from the individual bank, or from the borrower. But that borrower is committing to buying that from them at a specified time. The feds just admitting that they're buying these long-term .it's going to add and increase their balance sheet; then, October 23rd, they came out and said that the term repos were going from 35 to 40 straight to 45 billion-plus. And they made an amendment to the overnight repos going from 75 billion to a hundred and 20 billion a night. And I want to remind everyone that the Federal Reserve as of right now has 1.3 trillion dollars in excess reserves. It is meaning that the banks are parking 1.3 trillion at the Fed above and beyond their reserve requirements. Why is that a big deal? Let's remember how the repo market works. We've got these financial institutions, and overnight, they need cash. All they have is collateral, usually in the form of Treasuries or mortgage-backed securities. So they'll go into the repo market, and they'll pledge their collateral for that cash that they need overnight; or for that specific term ;and the rate of interest at the lender that's giving them that cash overnight before that term can get in the repo market is much higher than they can get by parking their money at the Federal Reserve . So that begs the question, why on earth would you park 1.3 trillion here, when the market only needs 45 or 120 billion; when you could just take this out, bring it over here, and get a much higher return on your money, with collateral that's supposed to be quote-unquote risk-free. I also want to address another liquidity issue that everyone talks about. Yes, the Fed is injecting liquidity into the repo market because there's not enough cash. But let's remember that all these people that are holding the collateral that might not need cash. All the banks and financial institutions they can quickly sell the Treasuries that they have; like the primary dealers; then they could take that cash and put it into the repo market and get a higher return .just like they could by taking their excess reserves and putting them into the repo market. So this puts a huge question mark over the repo market. And you have to say; well, is it the collateral that they're worried about ? or is the solvency of the institutions that are trying to borrow the money? The fact is that a lot of these people that are borrowing in the repo market are these banks and mortgage institutions that make money by borrowing short at lower rates and lending long at higher rates. Alright, guys, I'm taking a quick timeout here, and I explain to you exactly how this business model works of borrowing short and lending long. It can be a little confusing for those of you who are not in the financial industry. So as an example, we use, of course, the repo market. And I want to point out that the majority of the businesses that use this as a model actually get their short-term lending from the repo market. So this is very applicable. So we've got a mortgage company; we'll use that as an example. And let's say that they borrowed $ 1,000,000, and they come into the repo market, and they borrow that $1,000,000 for one month. And they pay 2% interest. Whenever we refer to interest rates, whether it's the interest rate that the Fed pays on a Treasury or the repo market; we're referring to annual rates of interest. So they're paying 2% annual interest for this one-month loan of $1,000,000 the mortgage company takes that $1,000,000 ; and they lend it out to all of those customers who are looking for mortgages to buy homes. but they lend this money out for ten years at a 4% annual interest rate. So the mortgage company is pocketing the difference between 2% and 4 percent. Now you may be asking yourself: well, wait a minute that doesn't make any sense at all. Because how on earth are they gonna pay back this million dollars that they borrowed? Because they only borrowed it for one month, this is how they do it. They come right back into the repo market, and they borrow an additional 1 million dollars to pay off the original loan. We call that rolling the debt over. So they're continually borrowing and paying back this original 1 million dollar loan. Because they've got the million dollars, that's out there in the real economy in the form of mortgages for these customers' homes. So they've got a million-dollar loan that they're paying $20,000 a year to borrow that money they're lending it out at 40,000. So they're pocketing the difference of $20,000. Let's just say they've got some administrative costs for $15,000. So this business will generate $5,000 a year from this 1 million dollar that was initially borrowed. The problem is if these short-term rates go higher than the rate of interest that they're getting for their customers. they are at a loss, and they go out of business. That's why the Fed is so concerned about the repo market. In addition to that short-term Fed Funds rate. So the Fed got to keep a careful eye on this. Because there could be a lot of systemic issues. A lot of these companies could be quote-unquote too big to fail; Just like in 2008. So is the repo market crisis getting worse? Yes, absolutely, it is. But we still don't know exactly what's wrong. That's why we've got to pay very close attention to this moving forward . and I can say this. I don't know exactly what's going on with the repo market. But I do know that it's something really really big. The longer the bank cartels kick the can, the lighter our pockets get. Is there any power left for We, the people can do? Leave a minimum bank balance to pay your fixed expenses and stay away from their fraud investment policy. In short, drain the bank cartels from consumer savings and investment. Time to switch to physical assets as the bankers do to their fiat money.
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