Wednesday, December 7, 2011

Chart of the Day: Central Bank Reverse Repos Are Higher Than During 2008 Crisis


Reverse Repurchase Agreements of Foreign Official and International Accounts (translated into English: foreign Central Bank funds deposited with The Fed because of European default contagion risk) have surged to a new record high above $100 Billion. 
To put this in perspective, foreign reverse repos peaked at around $90 billion during the 2008 financial panic. 
Nothing like rushing from the burning house into the burning barn.