For those of you that have been following my work over the years you know what the next line is, finishing that headline and why. For those of you that may be new here, it goes like this… When my phone doesn’t ring – I know it’s them. I began using that metaphor many years…
Yesterday (Wednesday) the Fed did address the two things I was calling attention to. Of course, the reduction of a 1/4 point in interest rates was already baked in. However, it was the second that seems to have suddenly given Wall Street some angst, which was: a halting of the runoff regarding its balance sheet….
Below is a my ad nauseam repeating of my prior warnings now going on years and as recently as a few weeks ago… I have been calling attention to the Fed’s Overnight Reverse Repo Operation for years, saying: The closer the Fed allows this to get to zero – the more dramatic the sudden liquidity…
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