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2020-

2020-03-11 b
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,

Fed Boosts Size Of Repo Bailout Facility For 2nd Time In A Week Following Liquidity Collapse

“As we noted earlier, this continuing liquidity crunch is not only bizarre, but increasingly concerning, as it means that not only did the rate cut not unlock additional funding, it actually made the problem worse, and now banks and dealers are telegraphing that they need not only more repo buffer but likely an expansion of QE... which will come soon enough, once the Fed funds hits 0% in a few days and is forced to restart bond buying to prevent the next crash.

“Will that be enough to stabilize the market? We don't know, but in light of the imminent corona-recession, on Tuesday Credit Suisse's Zoltan Pozsar repo guru published a lengthy piece whose conclusion - at least on the liquidity front - is that the Fed should "combine rate cuts with open liquidity lines that include a pledge to use the swap lines, an uncapped repo facility and QE if necessary."

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