Fed injects $31 billion into US banking system via repos on New Year's Eve

The Fed injected $31 billion in repos on New Year's Eve, the largest since the pandemic. Routine operation or a sign of crisis? Debate on Burbuja.info.

English · Original discussion in Spanish · Published

The Fed injects $31 billion on New Year's Eve: patch or warning sign?

On December 31, the Federal Reserve injected $31 billion through repos, the largest since the pandemic and above the peaks of the dot-com bubble. The operation, carried out quietly on New Year's Eve, sparked an intense debate on Burbuja.info: was it a routine year-end move or a sign of deeper problems in the banking system?

The record injection on New Year's Eve

User Rory B Bellows peine the thread with the data: the $31 billion exceeds any injection since the pandemic and also those of the dot-com bubble. The timing — New Year's Eve — did not go unnoticed. El DesPromotor joked: "They do it under cover of night on New Year's Eve", imagining the Fed rushing before the family dinner. Other forum members, like ajmens, were more blunt: "This is going to hell" or "Obviously we'll get out of this one with worldwide African inflation".

Normal or emergency?

The most moderate stance was defended by BudSpencer, who explained that it is a common practice: bank accounts run low after year-end corporate tax payments, and the Fed lends one-day liquidity against collateral. "Nothing strange here", he concluded. However, most of the thread leaned toward the alarmist thesis. Janus linked the injection to the need to pump up the stock market for the 401K; sociedadponzi saw it as a temporary measure; and several users suggested it could be related to bearish bets on silver. Madrileñerin shared an article linking JP Morgan and Co. to silver shorts, suggesting the Fed is covering losses. A possible hidden banking crisis was also mentioned, with references to the creation of the Fed in 1913 and the claim that "the system is a drug addict".

The debate remains open

145 days into the thread, no consensus has been reached. While some insist the Fed has normalized liquidity injections, others see in each operation a symptom that the system is walking on the edge of the abyss. What the thread does reflect is an almost unanimous distrust of official explanations and the certainty that, as estroboscopico said, "the Yanks are robbing us all with their damn printing press".



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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (79 replies).

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