🚨 FED POURS $18.5 BILLION INTO MARKETS OVERNIGHT — The Hidden Signal Wall Street is watching

I'm about to show you something that

happened last week or so

quietly without much fun fair I have to

say and the numbers are so large

that when I first saw them

um I had to double check the source. The

Federal Reserve Bank of New York just

pumped $18.5

billion dollar

into the financial system

overnight

in a single overnight operation. And uh

now you'll be thinking, okay, so the Fed

does stuff like that all the time. So

what does it matter? And and that's

exactly what I want to talk to you about

today because the chart that goes along

with this data and we're going to walk

through it together step by step tell

stellar stories that is shocking when

you understand what you're looking at.

This is going to be one of those videos

where by the end you'll look at the

financial headlines completely

differently. And that's the idea of this

channel. I want to educate my members

and my subscribers as to what's really

going on. Before we jump into it, let me

give you some background because none of

this makes sense without it. So, the

Federal Reserve is essentially the

central bank of the United States. It is

institution that controls how much money

flows through the banking system, the

water pressure in the pipes of our

entire economy. When the Fed opens up

valve, money flows

more freely.

When it closes,

things tighten up.

So now, one one of the tools one of the

tools the Fed uses to manage this flow

of money is something called the repo

operation.

Repo stands for repurchase agreement.

And I show that sounds

technical, right? I know this sounds

technical, so let me break it down in

the simplest way possible.

Imagine you own a very valuable watch

and you need cash today fast. So you go

to a pawn shop and over the watch, get

cash and agree that tomorrow morning you

are going to come back to buy the watch

back. That's essentially what a repo

operation is. Banks hand over their

treasury securities

basically government IUS to the Fed get

cash overnight and then they buy those

securities back the next day

very short-term loan overnight money so

what does the Fed do you know what what

does it do this well the overall the

official answer is this to make sure

that there's enough liquidity that's

just a fancy word for available cash in

the banking system so that interest

rates it stays where the Fed wants them.

Okay, so this this is where things get

interesting because the size of these

operations matter enormously

and what happened last week was not

normal. And remember, the more money

flows into the system, the more this

money needs to find a home.

Stock market anyone. So, okay, before we

go any further, I want to make a quick

second to talk to you. If you're new

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know, 10 15 minutes every morning to go

over what I'm actually doing to take

advantage of all the situations that are

happening right now in the stock market

can be quite which is getting quite

volatile.

And uh also I got a couple of books if

in case you're interested.

Um, so, okay. So, the image we're

looking at comes directly from the

Federal Reserve

of the Bank of St. Louis, which stands

for Federal Reserve Economic Data, Rend.

This is one of the most credible

publicly available data sources in the

world of economic information. It is not

a tweet. It's not someone's opinion.

This is actual official data. So let me

walk through you know how to read this

chart because once you understand what

you're look looking at everything else

is clicked. So at the very top of the

chart you'll see the title overnight

repurchase agreements Treasury Security

purchased by the Federal Reserve in the

temporary open market operation. That's

the official name. Don't don't let that

intimidate you. We already explained

what a repo operation is. These charges

show how much

money has been injected through those

overnight operations over time. Now,

let's take a look at the axis. The

horizontal line at the bottom, that's

the time.

The chart covers roughly the period from

mid 2021

all the way all the way to early 2026.

It's about five years worth of data.

vertical line on the left side, that's

money. Specifically, it measures in

billions of US dollars. So, when you see

a bar that reaches the number 30,

that means $30 billion was injected on

that day.

Now, here's a critical thing to

understand when reading this chart. For

most of the period from 2021 all the way

to 2024,

which is about three years, this chart

was almost completely flat, near zero,

which means the Fed was barely using

this tool at all. Take a moment to

really absorb that three years, barely

any repo activity.

Then as we move uh late 2024 and into

2025, we start to see some small bumps,

little blips like someone was testing

the waters. And then right at the very

right of the chart, which represents the

most recent data, you see these dramatic

vertical bars

shooting upwards. One of those bars

which is nearly $30 billion. and and the

most recent

triggered this whole story. 80 18 and a

half billion.

That's a spike. So, so that's what we're

here to talk about. And that's that that

spike didn't happen in a vacuum. The

data show that these large injections

have been happening quite a bit. Let's

take a look at it. So we looked at the

vertical, we look at the horizontal and

uh and we move towards the late 2025.

Uh as I say, we seeing some some small

bumps. So um so let's see what the

pattern actually means.

Now the Fed has an explanation for this.

To be fair, the explanation is not

crazy. They would say that these

operations are completely routine. They

would say that this is just a tool to

help control the federal funds rate,

which is the interest rate that bank

charges each other for overnight loans.

And it happens to be the rate. That's

the that's a famous interest rate that

they set, right, that the Fed sits down

every month or so and they say, "Okay,

we're going to lower the rate. We're

going to raise the rate." Right? That's

the rate that they're acting. Of course,

it doesn't impact you because this is

really a

it's a rate for between banks, but it

sets the tone,

right? And technically, that's true.

Repo operations are a standard part of

the Fed playbook. But here's what I want

you to put on your critical thinking at

for one minute.

If these operations are so routine, why

didn't we see them for three years?

Look at the chart again.

from 20 2020 from 22 to 24 when the Fed

was in what's called quantitative

tightening basically pulling money out

of the system the repo operations were

essentially zero the Fed was deliberate

they were removing liquidity

something changed according to this

report quantitative tightening ended

around late 25

and almost immediately we started seeing

this massive injections now some critics

of

you know look at this pattern and say

well this isn't just routine mania this

is a Fed responding to stress in

short-term funding market stress that is

always visible on the surface and shows

up in the plumbing of the financial

system let me use an analogy here

imagine your house has water pressure

problem right most of the time things

look normal you turn on the tap water

comes out and everything seems fine but

behind the walls in the pip pipeline,

they are leaks. Someone's

they small at first and occasionally

someone has to come up and you know pump

extra water into the system to keep the

pressure stable. Now if someone pumps

water in once that's maintenance. If

you're pumping water repeatedly in

increasing amount and one pumps was 18

and a half billion gallons, you start

wondering about the pipes.

So, what some analysts are pointing is

honestly it's a fair question to ask.

Now,

here's where the original post that

triggered this video makes a real bold

claim. It says, you know, that this

level of liquidity injection dwarf

typical.com bubble peaks. Let's unpack

that. The.com bubble was in the late 90s

to 2000. technology companies were being

valued at astronomical level based

purely on hype and speculation

and when it collapsed the NASDAQ dropped

by nearly 80%.

Trillions of dollars were wiped out.

During that era the Fed had to intervene

in markets cutting rates providing

liquidity to keep the system from

completely sizing up.

The claim is that we are seeing now in

terms of repo injection is larger

that what happened during those crisis

interventions back then. Now I want to

be careful here. Comparing numbers

across different time zone period isn't

always you know apples to apples but the

directional point is still worth taking

seriously.

The scale of what you're seeing is

historically significant.

Whether you think that's good policy,

smart management, you know, warning

signal, whatever it is, this is a lot.

And when you pair the scale with the

timing

right after the end of quantitative

tightening, the picture gives even gets

even more interesting.

So what does this mean for stock and

crypto, right? Okay. So

we get to the part that a couple of

people in this space care about most.

What does it all mean for me, for the

markets, for my money? So let's let's

let's be clear here. Okay, I'm not a

financial advisor. Nothing in this video

is financial advice. What I'm doing here

is representing data context and the

analysis that inform people in this

space already discussing. We you make

your own decisions.

So with that said, let's talk about the

history shows us when the Fed injects

large amount of liquidity

into the system, one of the effect is

that simply more money available more

money which that's basically what I said

at the beginning more money chasing the

same assets than to push prices up.

We are seeing this played in real time.

Think back in 2020 2021 the Fed flooded

the system with unprecedented levels of

money in response to the pandemic.

Remember the pandemic and what happened?

Stocks went up dramatically. The money

needs to find a home.

Real estate surge, asset prices across

the board exploded upward. Now

that's not a guarantee that the same

thing happens this time. The situations

are different.

The scale is different,

interest rates are different, but the

basic mechanic more liquidity can mean

more fuel for assets is one that market

participant takes seriously. The

original post specifically calls on

crypto as a potential beneficiary,

you know, and it's it's not wrong that

historically when risk appetite

increases, when money is flowing freely,

investor feel like they can reach for

higher return. crypto is often

responding more dramatically,

but and that's a big butt. Liquidity

alone doesn't guarantee price increase,

right? Market sentiment, global events,

regulatory changes, and thousands of

other factors too. But that liquidity

does is change the conditions.

It's like pouring gasoline. Whether

there is a spark is a separate question.

So keep that in mind. Understand the

conditions. Watch what's happening. But

don't make decision purely on the shot

or video obviously.

So I want to take a few minutes to talk

about something that I think is actually

most important take away from all this

and connects directly to the channel the

black swan and actually the book

mentioned earlier the concept of the

black swan. The black swan in financial

terms is an event that is rare,

unpredictable and has massive

consequences. Something that no one saw

coming. I mean not many people but that

many people dismiss as impossible until

it happened. You know the 2000 financial

crisis

was a black swan. The COVID crash of

2020 was a black swan.

And in most cases, if you look carefully

at the data in the month and years

leading up to those events, there were

signals, quiet, easy to ignore signals

in the plumbing.

The signs are there. Now, am I saying

that what's happening right now is these

repo injections is a sign that the black

zone is coming. No, I'm I'm I'm not

saying that. Nobody can predict that

with certainty. What I'm saying is this.

The people who navigated those past

crisis the best were the people who were

paying attention to the data asking

question and thinking carefully about

risk before before things went wrong and

that's exactly the mindset

I want this channel to help you develop

not fear not panic is exactly why I link

the you know take a look those those

books

Um, okay. So, let's bring it home. So,

basically, this is what we covered

today. The Federal Reserve Bank of New

York injected

18.5 billion dollars into the overnight

repo market. This is one of a series of

large injection we've seen in a short

period of a pattern pattern that stands

out clearly when you look at five years

of historical data. We walk through

exactly how to read the Fred chart and

makes the recent spike even more

noteworthy. We talk about what the Fed

says, routine rate control and what the

critic says, potential stress signals in

the funding market. We talked about the

historical relationship between large

liquidity injections

and this is not financial advice again

and we talk about the black swan

concept. The importance of watching the

data, staying informed, thinking about

risk before it finds you.