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Stock impact report

Why The Crash Was Delayed [zero hedge]

First Citizens BancShares, Inc. - Class A (FCNCA) 
Company Research Source: zero hedge
Why The Crash Was Delayed Authored by Robert Aro via Mises Institute , Whatever happened to the mother of all crashes that was supposed to arrive when the Federal Reserve began tightening its balance sheet back in 2022? For several years, I’ve been scratching my head, convinced that draining the balance sheet by trillions of dollars should have triggered a systemic banking failure or some other Black Swan event. In the past, crises like Lehman/AIG or the 2020 lockdowns took the blame, when in reality, the root cause was always monetary. From the peak in June 2022 to the trough in December 2025, the asset side of the Fed’s balance sheet shrank by roughly $2.3 trillion. That was the front door. But through the back door, something else was happening on the liability side : the Fed’s Overnight Reverse Repo Facility (RRP) was releasing $2.5 trillion of previously frozen private liquidity back into the financial system. If Quantitative Tightening (QT) removed liquidity, the RRP added it ba Show less Read more
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