Bazooka Backfires: Stocks Tumble, FRA/OIS Soars After Fed’s Massive Repo Operation Fails To Fix Liquidity Crisis

• Bazooka Backfires: Stocks Tumble, FRA/OIS Soars After Fed’s Massive Repo Operation Fails To Fix Liquidity Crisis
  by Tyler Durden, https://www.zerohedge.com/
  Maybe the Fed’s repo bazooka was just a water pistol?
  Less than an hour after the Fed announced a massive expansion to its repo facilities, adding one $500 billion 3-month repo today, following by an identical repo tomorrow and subsequent weekly $500BN repos (in addition to officially expanding NOT QE to a coupon monetizing QE-5), many are asking if the Fed applied the wrong medicine for two reasons:
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  The first, and obvious one, is that you can’t fix a viral pandemic with monetary easing… but let’s pretend that’s not an issue for now. The less obvious, bust just as important reason is that after the Fed announced the results of the first half a trillion dollar repo today, the uptake was a tiny 15.7%. Indeed, as shown below, dealers only submitted $78.4 billion in securities for today’s massively upsized 3-month repo operation…
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  … as traders realize that what is ailing the market is not access to the Fed’s balance sheet, but an overall recession that will collapse revenues, profits and cash flow, and which the Fed’s liquidity injections are powerless to prevent.
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  read more.

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