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The Blind Federal Reserve


Finance News Dec 16, 2019 by Frances Coppola via SeekingAlpha


Ever since the secured overnight repo rate (SOFR) spiked to 10% in September, there have been dire warnings that these exceptional movements show the financial system is fundamentally broken. The story goes that the post-crisis financial system is so dysfunctional that it is unable to operate without continual injections of money from central banks.



tags: #markets #lending #fed #federal-reserve #central-bank #repo #interbank #quantitative-easing #qe #sofr #reserves #asset #purchases

The Blind Federal Reserve

Ever since the secured overnight repo rate (SOFR) spiked to 10% in September, there have been dire warnings that these exceptional movements show the financial system is fundamentally broken. The story goes that the post-crisis financial system is so dysfunctional that it is unable to operate without continual injections of money from central banks.








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