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Is the banking system near collapse? [View all]
Federal Reserve liquidity facilities caught fire on Friday as month-end pressures pushed a key lending tool to a record level of usage.
The Fed’s Standing Repo Facility lent a total of $50.35 billion on Friday to eligible financial firms in two separate availabilities, the highest-ever usage since the tool was put in place in 2021 to provide fast loans collateralized with Treasury or mortgage bonds
The Fed’s Standing Repo Facility lent a total of $50.35 billion on Friday to eligible financial firms in two separate availabilities, the highest-ever usage since the tool was put in place in 2021 to provide fast loans collateralized with Treasury or mortgage bonds
Banks are running out of money. This is not the first time but the second time in a row banks have taken these short term loans. Nothing about this is normal.
AI is a sinkhole of cash that is being passed around like a pocket comb on picture day by 4 different corporations but offering no utility in the market. Nvidia was recently "valued" at $5 trillion dollars. This is not a good thing because it's completely built on a false premise.
The money and stock markets are far more fragile now than they were in 2008.
The Federal Reserve is spinning it as normal and even planned but there is absolutely nothing normal about what is happening in our economy right now. Tariffs, consumer confidence and AI are bleeding our economy and making it more and more unstable with each passing day.
Source: https://www.reuters.com/business/finance/banks-tap-fed-standing-repo-facility-record-numbers-amid-month-end-pressures-2025-10-31/
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