Dewey Fernfield
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of this site. This site does not give financial, investment or medical advice.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of this site. This site does not give financial, investment or medical advice.
At current Treasury borrowing, the Feds reverse repo deposits will be drained in 6 mos. at which time both interest and liquidity will be greatly affected.
The increasing Treasury borrowing will begin to squeeze credit markets driving up rates for corporate borrowing and putting banks in a worse position than they are currently. We are in the beginning of a liquidity crisis that is only going to get worse going forward. The bond market already sees this, but the stock market has not. It will be ugly when they finally do.