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70 sats \ 0 replies \ @super_testnet 30 Jun 2022 freebie \ on: The Fed & Their Reverse Repo Operations bitcoin
One thing I've heard is that the money in reverse repo operations is recycled. So they are not injecting a fresh 2 trillion dollars into the reverse repo market every day, they get the 2 trillion dollars back from the borrowers each day and then put it back in the next day.
It's still bonkers that the market needs a daily bailout, and the size of the bailout is growing, but it's easy to read that and think they are printing trillions of fresh dollars daily for each bailout -- which would be yet more insane -- and that's not what they are doing.