by scott_jr
- Treasury will kick off a borrowing spree that by some Wall Street estimates could top $1 trillion by the end of the third quarter, starting with several Treasury-bill auctions on Monday that total over $170 billion.
- This will be yet another drain on dwindling liquidity as bank deposits are raided to pay for it — and Wall Street is warning that markets aren’t ready.
- “This is a very big liquidity drain,” says Panigirtzoglou. “We have rarely seen something like that. It’s only in severe crashes like the Lehman crisis where you see something like that contraction.”
See also Billionaires cashing out while the economy wobbles—what does Bezos see coming that we don’t
finance.yahoo.com/news/trillion-dollar-treasury-vacuum-coming-135944792.html
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