by Nathan McDonald, Sprott Money:
All we have heard about for the past couple of weeks is the ongoing conflict between the United States and Iran—and the dire outcomes that situation may lead to. And for good reason: it is a true threat to the stability of our global economy in the short to medium term, and sadly, many good, innocent people have already lost their lives.
However, another sinister situation has continued to unfold behind the scenes, taking a backseat to the immediate threat at our doorstep. I’m speaking of the ongoing crisis in the repo markets.
If you thought this complete and utter mess was magically fixed by the Federal Reserve dumping bucketloads of money on top of it, you were horribly mistaken. In fact, the repo market crisis has continued to fester.