Header_Ad

Wednesday, September 18, 2019

Danielle Park – What’s the Repo Market Trying to Tell You?

from Financial Survival Network

Danielle Park notes that repurchase agreements or Repos are a cornerstone of today’s leveraged economic system. They’ve been around since 1917. It’s a way for banks to eke out a few more basis points on their bond holdings. Just yesterday the interest rate shot up from 2.25% to 10% overnight. This situation is unheralded. When things start going wrong in this market, there’s likely major problems ahead. It’s a market based on trust and certainty of repayment by banks and other major financial institutions. When they lose faith as they did in 2008, bad things happen. Like credit freezes and potential bank failures. Will 2019 be a replay of 2008? Let’s see what happens next.

Click Here to Listen to the Audio

Sign up (on the right side) for the instant free Financial Survival Toolkit and free weekly newsletter.



from Kerry Lutz Podcasts – Financial Survival Network https://ift.tt/2O52qOF