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Piggy Bank Running Dry

The RRP’s like the market’s emergency piggy bank. Down from $2.5 trillion in late 2022 to near-zero today. The sponge has been rung dry. Bank reserves now under $3T— the red line. Below that, the system doesn’t breathe. It gasps.

Line chart titled Fed Reverse Repo by Counterparties Accepted Total Last Price with two lines one black for NY FR Repo Data Counterparties Amount of Accepted Total Last Price and one red for Fed Reverse Repo by Counterparties Accepted Total Last Price. X-axis shows years from 2020 to 2025. Y-axis ranges from 0 to 2500 in billions. Data shows peak around 2022 then sharp decline to low levels in 2024-2025 with red arrow pointing to recent drop.

Regional banks have been trading poorly.

Weekly government payments temporarily boost their cash via “float,” but when a shutdown stops those payments, banks must sell assets to stay liquid.

Screenshot of a financial news article from Wall Street Journal dated October 16-21 ET updated October 25-21 ET titled Regional banks Jefferies shares tank as concerns about sour loans grow showing a photo of a man in a suit and text discussing regional bank stocks tumbling due to fears around lending health with key points on all stocks in a regional banking ETF down and Zions among hardest hit banks.

Red background financial chart with grid layout showing bank stock tickers and percentage changes, mostly negative values in white text like FHB -2%, COLB -7%, FNB -7%, MCB -6%, VLY -6%, KEY -2%, MTB -5%, CFG -4%, TFC -4%, FITB -5%, ONB -6%, RF -7%, HBAN -8%, USB -7%, WAL -10%, CMA -3%, PNC -4%, and ZION +1% in a positive context.

3 Comments on Piggy Bank Running Dry

  1. once read that when your money goes into a bank, its their money now? why cant americans get heir social security checks sent to them? they its for protection/safety but is it really??….guess they been planning the steal for a long time???????????

  2. Its going to get really rough next week. That’s when most of the government employees will miss their paycheck and need to rely on their savings.

  3. It’s called Plunder. Everywhere you look it’s Plunder. We are paying huge sums for cheap shit with fake currency = Plunder

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