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‘Call It What It Is’: The Federal Reserve Officially Restarts “QE”
Back in mid-August – I wrote an article highlighting the growing fragility in the U.S. funding markets. And that – thanks to the gluttonous U.S. Treasury – a wave of financial tightening was around the corner. (Meaning – the dollar shortage was getting closer). Then – not even a month later (September 15) – a black-swan suddenly appeared in the overnight repurchase-market. (Aka the ‘September Squeeze’ – when the overnight repo-rate exploded higher as dollar liquidity rapidly dried up). Thus – the dollar shortage was pushing U.S. money markets into a very fragile position. And – because of all ... (full story)