There is something about repo which repels mainstream curiosity. It’s more than weird, how throughout their long history repurchase agreements have gone so studiously overlooked. It has to be intentional. The real irony is that the Federal Reserve itself essentially introduced these things into American monetary practice.
Having examined just two weeks ago what 1982’s Drysdale Affair could have meant had the hapless bureaucrats at the Federal Reserve actually paid some interest in doing their job, where might we be today? To have understood, decades before 2007, that repo and collateral had become the central focus.
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