⚑️🚨 ALERT - Fed Reserve just pumped a staggering $31 Billion into the U.S. Banking System through overnight repos. This is the LARGEST liquidity injection since Covid and surpasses even the peak of the Dot Com Bubble. Happy New Year!!! image

Replies (22)

Well, yes. This is basically when the bank needs liquidity for operations by lending their collateral, mostly Treasuries, to the Fed overnight. Pay the Fed some interest for the overnight loan then take the collateral back. Bank liquidity operation
FreedomRock's avatar
FreedomRock 5 days ago
It was more than that - about $56b + another $46b from the banks reserve (mortgage backed). Figures approx.
Well the reason is to assist the dying financial system, that cant do without the liquidity. The consequence is increased money supply, and erosion of your purchasing power. Its the Cantillon effect in full retard mode.
This surge in repo usage is coming as the Fed ended its Quantitative Tightening program in December 2025, reversing a long period of balance sheet shrinkage, and is part of a broader shift back toward liquidity support tools rather than contraction
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