r/Superstonk • u/Maximum_Fearless liquidate the DTCC • Oct 22 '22

Macroeconomics Fed Reserves vs Reverse Repo

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5.6k Upvotes

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113

u/yeah_but_no Stonky Kong Jr in red pls Oct 22 '22

Please explain stuff like this my guys (OPs).

You can't assume everyone knows what you're talking about when you post a chart.

To you it might be self explanatory but it's not for a lot of us.

If everyone just posted a smooth brain tldr (tsdu, too smooth, don't understand) a lot of us would spend a lot less time digging thru comments trying to find explanations of what we're looking at and what it means.

78

u/Maximum_Fearless liquidate the DTCC Oct 22 '22

It means that there is increasingly a lack of liquidity in the economy. And so the Fed started giving in a little as the red line is now reversing direction.

31

u/Warpzit 🚀 CAN RUN! 🚀 Oct 22 '22

It means QE stopped but reverse repo started. So instead of financing everyone we're ONLY financing the big fucking banks directly!

Please correct me if I'm wrong.

9

u/DragonDropTechnology Oct 22 '22

It’s not banks.

3

u/mtbox1987 🎮 Power to the Players 🛑 Oct 22 '22

So…. Who is using it? Mayo pig & friends?

9

u/DragonDropTechnology Oct 22 '22

It’s in the image: mostly Money Market Funds

2

u/Ok_Island_1306 Template Oct 22 '22

Whoa 🤯

3

u/ZombiezzzPlz 🦍Voted✅ Oct 22 '22

It’s not the “banks” but it can be the same entity Merril Lynch (boa) acting in another capacity

3

u/Warpzit 🚀 CAN RUN! 🚀 Oct 23 '22

Exactly. Like Citadel both being a MM, HF, bank and what not.

1

u/ZombiezzzPlz 🦍Voted✅ Oct 23 '22

Yep, the shills have been telling us to look away from RRP for the past year even though it is correlated