In the conclusion to our article describing the ongoing - and deteriorating - basis trade crisis, which was soaked up virtually all liquidity across US capital markets, we said that "now we wait to see what the Fed will do because the next 48 hours may well be the most important in the recent history of the US."
To be sure, so far Powell has done exactly nothing even though the funding crisis that has gripped markets in the past few days amid the basis trade carnage has deteriorated to never before seen levels as observed by the record drop in swap spreads...
