Doug Noland (Credit Bubble Bulletin) put out an interesting piece on Repo Madness over the weekend.
Here’s some excerpts:
“U.S. securities/“repo” finance is clearly a major source of liquidity for the markets as well as the real economy. Yet this Bubble Dynamic is undoubtedly global, with international securities finance instrumental to inflating securities and asset markets around the world. A Bloomberg article this week referenced a $9.0 TN European “repo” market. There are also large repo markets in Japan and throughout Asia. How much finance used to leverage global securities is originating out of the likes of Hong Kong, Singapore and Shanghai – not to mention the Cayman Islands and Luxembourg? How much global “repo” finance has been flowing into U.S. debt markets?
Notably, ROW U.S. “repo” Liabilities jumped $292 billion, or 43%, in nine months to $1.207 TN. How much of this ROW market activity – securities buying and “repo” finance – emanates from global “repo” and off-shore financial centers funding leveraged speculation in U.S. securities?
Who holds these Trillions of “repos”? Broker/Dealers lead with $1.467 TN, followed by Money Market Funds at $1.173 TN; Rest of World at $781 billion; Foreign Banking Offices in U.S. at $403 billion; and the Fed’s recently acquired $203 billion. In extraordinary growth, over the past year “repo” holdings have increased $302 billion for the Broker/Dealers; $252 billion within Money Market Funds; $145 billion for Rest of World; $98 billion at Foreign Banks in the U.S.; and $203 billion held by the Fed.”
Doug Nolan’s Repo Madness full article from over the weekend is here: https://creditbubblebulletin.blogspot…
Now Repo Distortions Emerge in Europe’s $9 Trillion Market https://finance.yahoo.com/news/now-re…
Segmentation In $9T Europe’s Repo Market Could Lead To Problems: BSI Report https://finance.yahoo.com/news/segmen…
Europe’s Economy Records Worst Quarter Since 2013, Slowing To Persist Into 2020 https://www.zerohedge.com/economics/e…
Please visit the Wall St for Main St website here: http://www.wallstformainst.com/
Follow Jason Burack on Twitter @JasonEBurack
Follow Wall St for Main St on Twitter @WallStforMainSt
You can also checkout the Wall St for Main St Facebook Fanpage at http://www.facebook.com/WallStforMainSt or the Wall St for Main St Facebook Group where you can learn and join in on the conversation!
Commit to tipping us monthly for our hard work creating high level, thought provoking content that includes interviews with top experts, analysis and short videos about investing and the economy https://www.patreon.com/wallstformainst
Also, please take 5 minutes to leave us a good iTunes review here! We only have about 75 5 star iTunes reviews and we need to get to our goal of 100 5 star iTunes reviews asap! https://itunes.apple.com/us/podcast/w…
If you feel like donating fiat via Paypal, Bitcoin, Gold Money, or mailing us some physical gold or silver, Wall St for Main St accepts one time donations on our main website.
Donate Crypto Currency to WS4MS:
Send Bitcoin to: 1N5iDrazojYX5rWxmoyp982RDXJzJrFoPC
Send Ethereum (ETH) to: 0x748dD59fA5d5dF80E8C0038DD4F60DAb810fe61a
Send Litecoin to: MW7g44j5FX9CYEkvfPvxsW5dFjHY84yup4
Send DASH to: XuEEhWptwf1XxP2nFYQxmBfBBJYehqRoBJ
Send Zcash (ZEC) to: t1MGcxyWpiH6JeyF9nnWHw9poRpvTW4PT6S
Send Bitcoin Cash (BCH) to: qr7mp7f053rwnpxalxljl3f9x5tulzv53ya88d7wch
Wall St for Main St is also available for personalized investor education and paid research work (we write research reports and teach). Please email us to learn more about the research work we offer at: email@example.com
**DISCLAIMER- ANYTHING MENTIONED DURING THIS AUDIO OR SHORT VIDEO RECORDING IS FOR INFORMATION & EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE INVESTMENT ADVICE. JASON BURACK AND HIS GUESTS ARE MERELY STATING THEIR OPINIONS ON DIFFERENT TOPICS RELATED TO INVESTING, THE ECONOMY, MARKETS OR COMPANIES. PLEASE TALK TO YOUR INVESTMENT ADVISOR AND DO ADDITIONAL RESEARCH AND DUE DILIGENCE ON YOUR OWN BEFORE INVESTING AND MAKING IMPORTANT INVESTMENT DECISIONS.- DISCLAIMER**