{"id":48907,"date":"2019-10-08T14:57:01","date_gmt":"2019-10-08T19:57:01","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48907"},"modified":"2019-10-08T14:57:04","modified_gmt":"2019-10-08T19:57:04","slug":"panic-at-the-repo-one-of-the-worlds-top-repo-experts-explains-what-really-happened","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48907","title":{"rendered":"“Panic At The Repo”: One Of The World’s Top Repo Experts Explains What Really Happened"},"content":{"rendered":"\n

“Panic At The Repo”: One Of The World’s Top Repo Experts Explains What Really Happened<\/a><\/h3>\n\n\n\n

Panic At The Repo<\/strong><\/p>\n\n\n\n

As a professional trader, I keep an eye out for the next panic or market crisis. Since the beginning of my career, there was a crash or panic every few years in one market or another. You try to think about what market is overbought. What market is in a bubble. What market just appeared on the cover of Time Magazine! Little did I ever imagine the Repo market would experience the next big panic. This is a market consisting of AAA-rated risk-free securities backed by the United States of America! How can there be a crisis in U.S. Treasury securities? <\/strong>We didn\u2019t even make the cover of Time Magazine!<\/p>\n\n\n\n

I write about the Repo market every day. As a service to our clients, I decided to put everything I know about the Repo market collapse down on paper. So here it is!<\/p>\n\n\n\n

Modern Day Bank Run<\/strong><\/p>\n\n\n\n

We\u2019ve seen the old pictures or films of people lining up outside of a bank to collect their deposits. Think of the Depression in the 1930s. Knowing that a bank can\u2019t make good on all of their customers\u2019 deposits means the first people to get their money are more likely to get their money. Period. Banks never keep all of their customers\u2019 deposits as cash on hand. They invest those customers\u2019 deposits by making loans – like a mortgage loan to a family to buy a home or loan to a business to help start a new venture. Banks invest in loans and borrow money through deposits. That also means they loan long-term and borrow short-term. Don\u2019t worry, this is important later on.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

“Panic At The Repo”: One Of The World’s Top Repo Experts Explains What Really Happened Panic At The Repo As a professional trader, I keep an eye out for the next panic or market crisis. Since the beginning of my career, there was a crash or panic every few years in one market or another. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[27335,6934,27336,2721],"class_list":["post-48907","post","type-post","status-publish","format-standard","hentry","category-economics","tag-curvature-securities","tag-repo-market","tag-scott-e-d-skyrm","tag-us-treasuries"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48907"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48907\/revisions"}],"predecessor-version":[{"id":48908,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48907\/revisions\/48908"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}