US Federal Reserve pumping cash into banks at alarming rate!
The Federal Reserve (not a US govt. agency but, a private bank) has upped the Repo Rate (the amount of cash given to banks to keep them solvent) by over 200 Billion dollars in the past few months and has accelerated the injections in just the last few days. Estimates are the Fed has made "an emergency injection of more than $125 billion over the past two days." This does not bode well for the US and world economies. We could be facing another credit crunch worse than the post 2007-08 credit crash where banks were bailed out with over 1 TRILLION dollars to keep them from failing.
The stock market has seen massive fluctuations in the last 3 months; swinging wildly by /- 3%. This volatility has investors running to the VIX (the volatility index) and trading TVIX, a gauge of market uncertainty. In addition to seeking the TVIX safe harbor, investors seem to be heading primarily back into Bitcoin but also, the other top five crypto currencies which are more affordable to the average buyer.
The increased Repo rate is a ringing bell of what is to come in the US and global markets in the very near term. As always, do your own research and CYA!
Here is an article I found useful on the matter:
https://www.cbc.ca/news/business/what-s-happening-in-the-repo-loan-market-and-why-does-it-matter-1.5289518
Best of luck and watch your assets!
Cheers!
The global recession is near
You are right, it's coming. There are a lot of people with their heads in the sand, wishing it was not so but, it is. Make some adjustments in your spending now and work off some debt, if possible.