Hi I'm Josh Brown. I'm here with Michael Batnik as always and we're about to play our favorite game

What are your thoughts? Michael doesn't know what I'm gonna ask him and I don't know what he's gonna ask me

stick around. Let's see what's happening. Okay Michael I want to get to the big topic of the day first

okay Michael I want to get to the big topic of the day first, which is this repo rates thing.

Long story short, on Monday and a little bit on Tuesday, there was an issue with overnight borrowing where rates shot up and a lot of people are

ascribing technical factors to it. We don't really need to get into what the...

Technical factors happen when you have no idea what's going on.

I guess. Now people are saying like it was

this confluence of there was a Treasury auction at the same time that corporate

taxes were due there's like an IRS something yeah yeah so what ended up

happening was all of a sudden there wasn't enough liquidity

for everything the banks needed and so the rate jumped up and people took note of that

because typically that weight stays within the confines of what the Fed is doing with overnight. that rate hundred articles about it and I'm not dismissing and I'm not saying it's not

does that signal that the Fed is actually going to raise rates today to keep it in

line with that? No I think it signals that the Fed is going to have to talk about

what they want to do so that that doesn't happen again.

And so what the way they've dealt with it is, I'm going to get to my question a second,

the way that they've been dealing with that is spot back down and then the question is

meaning they came in yesterday with like 73

billion dollars of liquidity and that rate then

back down and then the question is will they do some kind of a standing solution

where they just say, OK, here's the repo rate,

...