Every day in the early afternoon, money-market traders are glued to the Federal Reserve Bank of New York’s website to see the results of the overnight reverse-repurchase agreement facility.
They’re not the only ones.
A screenshot of this obscure but important facility’s daily usage is religiously uploaded to a Reddit forum called Superstonk, a discussion board similar to WallStreetBets where users swap memes and stock tips. As usage of the facility swelled, the post regularly became one of the site’s most popular of the day, often attracting thousands of comments.
While professional traders check the central bank’s website to see how much excess liquidity the Fed is sopping up, many Reddit users are interested in, well, something else: Signs of an impending market crash. Or, in some cases, you guessed it: more evidence for why stocks like GameStop Corp. are headed “to the moon.”
The full article is available at https://www.bloomberg.com/news/articles/2021-11-09/what-is-reverse-repo-fed-facility-reddit-superstonk-users-new-obsession