Tag: liquidity

What to Do NOW in Case of a Future Banking System Breakdown

| November 13, 2019 | Articles: Insights
What to Do NOW in Case of a Future Banking System Breakdown

The banking system may not be as sound we’ve been led to believe. It continues to get propped up through central bank interventions, which strongly suggests it wouldn’t be able to stand on its own. Last Thursday, the Federal Reserve injected another $115 billion into financial markets via “temporary operations.” The Fed is targeting the repo market in particular, through which banks lend to each other on an overnight basis. For some reason, banks have grown weary of committing liquidity to each other in what should be one of the safest lending markets on the planet. Perhaps they are being overly cautious. Perhaps they (or one in particular) are simply […]

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