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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Real Man who wrote (79918)3/12/2007 10:47:26 PM
From: bart13  Read Replies (1) of 110194
 

The origin of the large drop?


While all you said is true and definitely part of the full picture, what I'm referring to is both the very unusual zero balance of the TIO hot money injections for quite a while (dark black line):



and here's changes in comm'l banking repos. Notice especially the sudden drops last May and recently from high levels in the light green line (13 wk change rate), and its correlation to market drops:



No question that many more credit problems are still ahead... and how far it goes or is allowed to go is still open for me.
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