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> you keep some cash in your brokerage account to fund potential trades, and the broker earns interest on that cash What if the US joins the negative/penalty-i
by sparkling 7y ago
> you keep some cash in your brokerage account to fund potential trades, and the broker earns interest on that cash
What if the US joins the negative/penalty-interest club like the Eurozone countries?
- omarhaneef 7y agoGreat question. I will point out that most of the money is made in the overnight REPO market, and those rates seem to be shooting higher even as the interest rates are cut. I know, I am his biggest fan, but this is Matt Levine again on the REPO rates: https://www.bloomberg.com/opinion/articles/2019-09-30/a-repo-crisis-isn-t-all-bad https://www.bloomberg.com/opinion/articles/2019-09-30/a-repo...