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Saturday, March 28, 2020

The US repo market has no bids. Hahaha!

https://sg.finance.yahoo.com/news/feds-term-repo-operation-receives-154356407.html

Nobody wants to borrow overnight money. Hahaha!

The financial market in the US had no serious liquidity problem in the first place but the US government chose to inject more than US$1T into the repo market.  We had stated this below previously.

http://sg-stock.blogspot.com/2020/03/no-us-monetary-and-fiscal-policy-can.html

People won't borrow cheap or free money to fund their businesses when there are no customers.

What's the FED going to do when people don't want to borrow cheap or free money?  I can tell you that the US FED has no idea how to deal with this predicament.


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