Why $200 Billion In TOMO? It's The Federal Deficit, Stupid!

..... the fact that the Fed has had to pump nearly $200 billion in cash into the banking system in just one month, and promise to add another $480 billion or more in outright purchases of Treasury securities over the next 6 months is mind boggling. Why else would they do this? The US economy is trundling along at a slow but steady growth rate. Why the urgency? Because the banking system, and the Primary Dealer system in particular, are on the verge of collapse, groaning  under the weight of the unprecedented, and ever growing mountain of US Treasury securities, they are being forced to absorb and hold.

Fed Temporary Open Market Operations - Repos Outstanding

 

 

 

 

 

 

 

https://davidstockmanscontracorner.com/?p=355223&preview_id=355223&preview_nonce=da770887ec&preview=true

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.