Dateline Sept 17th 2019
The Federal Reserve quickly dumped $75 Billion into the economy…. the money was injected into the system to avert a massive financial crash!
March 16th 2019; Monday morning, large short term loans used by banks to tide them over when there are shortages of liquidity became unavailable and rates for these gigantic loans shot up to double digit figures.
High interest rates have caused financial crashes in the past
The Fed, seeing a pattern and worried about possible instutional bankruptcy, panicked and flooded the market with lots of money!
The question is why were short term loans unavailable, where did that money go and what shot up the interest rates?