<story><title>Statement Regarding Repurchase Operations</title><url>https://www.newyorkfed.org/markets/opolicy/operating_policy_190920</url></story><parent_chain><item><author>ww520</author><text>One thing to note is that $100B is created everyday but the $100B is destroyed the next day.  It&amp;#x27;s not like $100B created everyday for the next month.</text></item></parent_chain><comment><author>TheAlchemist</author><text>That&amp;#x27;s true. But another way to look at it (not necessarily good), it&amp;#x27;s like the water in desert. You are in the middle of the desert and you need water - you ask a guy - lend me some water please, I will buy you back the same amount once we are home. Technical speaking, the amount you get and the amount you give back is the same.&lt;p&gt;What happened during the last crisis is also a great illustration - many banks took taxpayers money during the &amp;#x27;dark hours&amp;#x27; then paid it back easily some time later, when the air cleared. Some went as far as to suggest it wasn&amp;#x27;t necessary at all. Well, the truth is, the banking system as we know it survived only thanks to governments stepping in - otherwise &lt;i&gt;none&lt;/i&gt; of the banks we know would exist today. There was 0 trust during the crisis - and all the banking system is build on trust.&lt;p&gt;That&amp;#x27;s why the FED is &amp;quot;taking a sledgehammer to squash a bug&amp;quot;. That&amp;#x27;s also why it&amp;#x27;s a very disturbing signal. My gut tells me shit is about to hit the fan.&lt;p&gt;PS. But don&amp;#x27;t try to time the market and short it - as the saying goes, the market can stay irrational longer than you can remain solvent.</text></comment>
<story><title>Statement Regarding Repurchase Operations</title><url>https://www.newyorkfed.org/markets/opolicy/operating_policy_190920</url></story><parent_chain><item><author>ww520</author><text>One thing to note is that $100B is created everyday but the $100B is destroyed the next day.  It&amp;#x27;s not like $100B created everyday for the next month.</text></item></parent_chain><comment><author>LocalTrust</author><text>I guess that&amp;#x27;s a fair point. Sorry for oversimplified explanation. So, to attempt to improve on your further clarification: technically it is $75b per night created and destroyed each morning. And 3 separate cycles of $30b will be created for 2 weeks and then destroyed. Therefore $90b injected for 2-weeks then destroyed. Point is this is being injected to help banks cover their overnight exposures with the hope that they won&amp;#x27;t need the help anymore after Oct 10.</text></comment>