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by Judgmentality
1832 days ago
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> Since there has never been any company with $600 billion annual sales I wonder if someone clever might exploit this loophole to kill the reverse repo market, which is almost hitting $600 billion daily. And technically it's run by the fed, which is technically a private entity. This is obviously an outlier within an outlier and God knows the government wouldn't let it's magical money maker come under fire, but it seems like with the right set of circumstances this going in front of SCOTUS could completely undermine how our entire concept of debt and lending works in the US economy. Everything I'm saying is purely speculation. This actually happening is about as likely as the US admitting it invaded Iraq for oil (and a bunch of other more nuanced reasons). It's not about honesty; it's about money. |
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The Fed executes repos and reverse repos. It does not run the market. Primary dealers execute these through tri-party repo agents, which practically is like two banks.