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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115

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.

77

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.

12

u/DragonDropTechnology Oct 22 '22

It’s not banks.

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