Repo market stress and bond volatility spikes are symptoms of a collateral-based financial system under strain; the Treasury attempts to control bond volatility through buyback operations that swap illiquid off-the-run bonds for liquid on-the-run bonds, which correlates with MOVE Index movements.

causalpending

Speaker

Michael Howell

Evidence Quote

the whole financial system today is collateral based. In other words, people have to post collateral before they can get loans

Source

Massive Liquidity Shock Coming; Brace For 'Wrecking Ball' Warns Economist | Michael HowellDavid Lin
Created: 8/12/2026, 6:46:58 PM

My Notes

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