Tag: Fed is panicked

Stocks & Yields Plunge After Powell Presser Fails To Inspire

Via ZeroHedge

Did The Fed just swing from omnipotence to impotence?

It seems an emergency rate-cut of 50bps has done more to damage confidence that rebuild it… “what do they know?”

The Dow is down 1000 points from the post-Powell rate-cut spike high…

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Pondering The Collapse Of The Entire Shadow Banking System

Authored by Mike Shedlock via MishTalk,

What’s behind the ever-increasing need for emergency repos? A couple of correspondents have an eye on shadow banking.

Shadow Banking

  • The shadow banking system consists of lenders, brokers, and other credit intermediaries who fall outside the realm of traditional regulated banking.
  • It is generally unregulated and not subject to the same kinds of risk, liquidity, and capital restrictions as traditional banks are.
  • The shadow banking system played a major role in the expansion of housing credit in the run up to the 2008 financial crisis, but has grown in size and largely escaped government oversight since then.

The above from Investopedia.

Image courtesy of my friend Chris Temple.

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