by Dave Kranzler, Investment Research Dynamics:
Unequivocally, the “repo” operations by the Fed is “QE.” Well, let’s just call it what it is because “QE” was coined in place of “money printing.” The socially correct posture to assume on Wall Street and in DC at the Fed is to label the current bout of money printing “repo operations.” In fact, based on all of the underlying data I scour daily, let’s just cut to the chase and call this a de facto banking system bailout.
The technical details on why the “plumbing” in the banking system is getting “clogged” is mere surface analysis. The underlying systemic problems are similar to the problems that pulled the rug out from under the financial system in 2008. Bank assets, specifically subprime lending assets, are melting down again.