Don't panic! The Fed's wallet has loosened again.

On December 1st, a massive $13.5 billion was pumped into overnight repurchase agreements. How exaggerated is this scale? It is second only to the pandemic in 2020 and even surpasses the dot-com bubble period in 2000.

**What is called husband separation repurchase?**
It's actually a short-term borrowing game played between banks and the Fed.

The bank was anxious: "Brother is short on cash for turnover, I'll pay you back tomorrow, I'll put the government bonds as collateral."
Fed: "Alright, I'll give you 13.5 billion as an emergency, charge some interest, and you can repay me the principal and interest tomorrow."

In simple terms - it's a switch for the Fed to inject money into the market for banks in urgent need.

**What does this mean for the market?**
In the short term, it's definitely a positive signal.

When liquidity returns and banks have money, they either lend or invest. When the market is not short of cash, the stock market, bond market, and cryptocurrencies are usually pushed along.

More importantly, the Fed is personally stepping in to explain that it is monitoring the market and will not allow it to truly get into major trouble. In times like this, panic can actually be an opportunity — don't hesitate to buy the dip!