First Mining Gold Corp (FFMGF)

[steelpiston71]

Repo situation (Hint; PDs) explained:

Might want to bookmark this:
http://wallstreetexaminer.com/category/federal-reserve-qe-new/

From the 18th:
http://wallstreetexaminer.com/2019/10/fed-repos-drop-but-pomo-purchases-keep-climbing-as-the-financing-crisis-continues-to-worsen/

The money shot:

"What amazes me is just how little all that Fed conjured money has bought since the crisis flared up in mid September. Fed repos have grown to $189 billion in TOMO since then, and $35 billion in POMO. Thats a total of $224 billion in direct cash injections into Primary Dealer checking and trading accounts! Since the day this started, the S&P 500 has gained oh wait make that lost 15 points. And the 10 year Treasury note yield is all of 6 basis points lower.

6 basis points! Thats what $224 billion bought. But at the same time, in the past 10 days, the yield on the 10 year note has risen by 22 basis points. So that money pumping only worked for the first 3 weeks of the program. Since then, it hasnt worked at all. Bond prices have fallen and yields have risen.
Bond Prices Under Water Will Trigger A Downward Spiral

If they dont reverse that soon, theyre gonna have a very big problem on their hands. For months, the dealers and everyone else bought bonds at lower yields and higher prices with repo money. The value of the collateral has since sunk and no longer covers the amounts borrowed! The dealers must either put up more cash, or they will be forced to sell the notes and bonds that they pledged. Prices will fall and yields will rise.

Yep, they gotta get this turned around immediately, or the margin calls will sink this market fast. We can only imagine how much the Fed would need to pump to stop that. It would be a lot more than it is currently pumping. One way or another, this looks likely to spiral out of control. We just dont know if it will be a deflationary spiral, or a hyperinflation."