The usually staid Repo (repurchase agreement) market was anything but staid last week, with rates rising from 2.25% to 10% literally overnight. For those of you not in the know, banks will sell off their treasuries and other triple AAA government securities to others for one or two nights in exchange for cash. Then, if all goes well, which it almost always, does except in 2001 and 2008, the transaction automatically unwinds in 24 to 48 hours. It's a mainstay of the financial system. The fact that rates shot up the way they did less than a day could mean a large bank is underwater and was unable to repurchase their securities or the collateral was pledged to several lenders or something equally as bizarre. Either way, it could well be a canary in a coal mine moment for the global financial system.

In other news, we propose a very simple and likely scenario for the Whistleblower kerfuffle. It all comes down to orange man bad. He set the whole thing up to expose a couple leakers including Adam Shiffty and to get the Biden scandal out in the open where the press would be forced to cover it. And as usual they fell for it. Will the media ever learn? No, it's against their nature.

Direct download: TLR_472_24.Sep.19.mp3
Category:general -- posted at: 9:01am EDT



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