A Brookings paper has proposed the Fed introduce an explicit facility to backstop the basis trade unwind, either by taking the other side directly or giving hedge funds direct access to the standing repo facility, representing a controversial direct hedge fund bailout unlike previous indirect interventions like LTCM.

factualpending

Speaker

Simon White

Evidence Quote

a Brookings paper came out with a very controversial suggestion that maybe the Fed has to introduce a explicit facility to backstop the basis trade unwind...But either way it's crossing the Rubicon...they've never done a direct bailout of hedge funds [38:00]

Source

MacroVoices #475 Simon White: The Dawn of A New Financial OrderMacro Voices
Created: 8/11/2026, 7:06:30 AM

My Notes

Loading notes...