but I also reckon this situation has already goone way longer and farther than I initially thought.
Agreed. This is very concerning.
As you correctly pointed out back here, the initial excuse from the Fed was to cover quarterly tax payments:
because of a large fiscal payment date is approaching for many corporate in the US.
This date has long since come and gone. And yet, instead of seeing the repo liquidity decrease, it is now massively
increasing instead. Why is the shortage getting worse? Has there been any statement from the Fed about why this "definitely-not-quantitative-easing" is necessary, since their original excuse is now invalid?
I stand by the point I made
back here, which seems more accurate the longer this goes on. This is looking more and more like the banks are in serious trouble.