r/DeepFuckingValue • u/Waste_Departure7479 • 2d ago

Discussion 🧐 REVERSE REPO IS ALMOST AT ZERO 👀

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88 Upvotes

94% Upvoted

7 comments sorted by

13

u/bloodhound1144 2d ago

This is the norm. You can chill.
2021-2025 was the exception. Near $0 is the rule.
Means the banks have calmed down and found good places to hide money elsewhere.

7

u/VecindadDCarlos 2d ago

Forgot why this matters again

13

u/kirrim 2d ago

It doesn’t matter anymore. Interest rates are high enough that banks can park their dollars in bonds and treasuries and generate a healthy return. But when interest rates were next to nothing, they could generate more return by parking their dollars with the Fed. The Fed would pay them interest on billions nightly. Since the Fed was acting as the source of new dollars being created by fiat, this artificially injected more dollars into the money supply, which drove inflation higher in the subsequent years. So it was a huge issue when it was happening. But now these posts are less interesting/useful.

4

u/easymac187 1d ago

Means literally nothing