The Repo Liquidity Crunch Reveals Market Stress. Will Gold Shine?

From sunshineprofits.com

Last week, the Fed had to inject liquidity into the repo market for the first time since the Great Recession. Not once, but several times - and also commit to do more. Will such a crack in the proverbial dam let gold's allure shine? Scramble for Liquidity Pushes Rates Up The focus last week was on the FOMC decision to cut interest rates. But a real drama was unfolding in the background. The Fed injected $278 billion into the securities repurchase, or "repo," market over four days, to stabilize short-term interest rates and to calm the repo market scrambling for liquidity. More precisely, the U.S. central bank ... (full story)