Hello fellow rebel capitals hope you're well Goldman Sachs just comes out with a

dire warning about the repo market I'm sure most of you remember this going all the way back to September was it

18th 2019 I know it was September 2019 where we had that huge spike in repo rates as Black Swan event, so to speak,

where the Fed had to come in and start, well, Jerome Powell said,

whatever you do, don't call it QE.

But I don't know what we're supposed to call it, but they went out and started buying bonds again and increasing the size of their balance sheet.

In other words, QE, wink wink, wink.

So let's go over to this article from Zero Hedge and see what Goldman Sachs is talking about.

Why are they worried about the repo market?

And then we're going to do some investigative work. This is going to be a CSI, a macro CSI episode of the Rebel Capital show. I think you guys are going to enjoy this and right out the bat I can tell you I'm going to

reveal some things that you might not have thought about before but I by no means have all the answers because this stuff gets extremely, extremely

complicated. But it's crucial that we're cognizant of this stuff at the plumb stuff meaning the

plumbing of the financial system you guys that lived through the GFC

understand how important the plumbing is and for those of you who are younger or newer to the

channel or newer to economics, you remember the potential catastrophe we had with the repo blow up. We'll call it 1.0. So we've got the

screen shares going. Let's shoot over to Zero Hedge and I want to be respectful of Zero Hedge because this is an article from their

premium service and so I you know I don't want to sit here and show you the whole

article because this is something that their members actually pay for.

But this really revolves around a report that Goldman just put out, and it's about swaps interest rate swaps or interest rate swap

spreads more specifically so an interest rate swap spread they right here you see the three-year swap spread. Right here you see the three year swap spread so for. So what this means is it's just taking a

the benchmark as let's just say a three month treasury or in this case it's a three year

sofer contract and they're saying okay where is the fixed rate of a swap, interest rate swap?

...