The funding shortage is once again getting worse. In fact, adding across the overnight and term repo ops, there was a total $142BN funding need today, the highest yet!
The new repurchase agreement (repo) program was supposed to only last through October 10th with a daily overnight repo borrowing limit of $75 billion dollars (that's supposed to be paid back immediately with interest) and then a separate 14 day term borrowing facility. According to Danielle DiMartino Booth, the Fed's balance sheet doesn't expand unless the Fed expands the borrowing beyond 14 days.
Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.