Hello, fellow roble capital, soap, you're well.

So we have something very interesting brewing in the repo market.

So we've got to not just look at the repo market, but we've got to combine this with everything else that's happening in macroeconomics that would pertain to an anomaly, which is exactly what we have just seen, and try to connect some dots.

So let me do a quick screen share, and I'll show you exactly what I'm referring to.

So this just happened right here. It just happened yesterday, a day prior, and it's unusual.

Now, the first thing that comes to mind is it's just end of the month.

It might be end of the quarter, but you look at the other ends of months and other ends

of quarters, and they don't spike like this. Now, this isn't signifying

the total repo market activity by no stretch. This is just simply the repo transactions done

with the Federal Reserve. So you have to ask yourself, okay, they're likely going to pay a higher

interest rate if they do a repo transaction with the Fed.

It's not going to be as easy. It's going to be a little more cumbersome. So why? Why would you

do that? Well, there's a reason why because you're having to pay way too much in repo. And why are you

having to pay way too much? Because there's counterparty risk, right?

I think a lot of people would argue,

well, there's just not enough bank reserves,

but I have a hard time buying that

because I don't really think the banks need bank reserves

to actually settle.

I don't think they need bank reserves to do a repo transaction.

So now let's zoom out because when we zoom out, this becomes a lot smaller.

So then the question becomes, okay, is this something just minor?

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