The real economy can't stand higher interest rates. Therefore it's a common belief the Fed can and will continue to expand their balance sheet to combate any negative event, including in the repo market. But what if they can't continue to expand their money printing efforts, what if they can't support the repo market?
Before, I saw inflation as being the Fed's ultimate Kryptonite and we'd need to see inflation before we got to an "end game" type situation. I now believe we've crossed a threshold were the Fed is backed into a corner where ANYTHING they do will bring on economic collapse and the end game. Why? Because if the balance sheet continues to expand it could drive rates higher instead of lower. If rates go higher it could the US economy comes to a halt.
In this repo market end game video I discuss the following:
1. Why Jeff Sniders collateral hypothesis is playing out with MBS's.
2. New repo market insights you've never heard.
3. Repo market end game...what does it look like and what are the catalysts you should be looking for?
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