General Discussion

the government shut down put our banking system at risk of crashing because there is less money flowing through the banking system due to the Trump regime’s firing of thousands of workers who are no longer being paid? Was the reason the Ds voted to open the government to prevent a depression that would be bigger than the depression in 1929?

I don’t want to give the Ds credit where no credit is due, but I am trying to wrap my head around why the Ds voted to open the government. I submit this article for discussion purposes and note that the banking problems listed in the article coincide with both times Trump was in office.

The following is the synopsis from an October 31, 2025 article published in The Economic Times News and was written by Piyush Shukla. The article’s title is “Is the Fed quietly signaling trouble ahead? Powell injects $29.4B into the banking system — biggest repo operation since 2020 — as U.S. bank reserves crash to $2.8T”

Synopsis
Federal Reserve just made a huge move — and few noticed. It quietly injected $29.4 billion into the banking system overnight. The largest liquidity boost in more than five years. Official data from FRED confirms it. The operation happened on October 31, 2025, through overnight repos — short-term loans where banks trade Treasuries for cash. It’s a signal the system is under real pressure. U.S. bank reserves have crashed to $2.8 trillion, a four-year low. The sharpest drop since 2020. That’s serious. When reserves fall, liquidity dries up. Funding markets tighten.

*snip*

This kind of repo operation allows banks to swap Treasuries for cash overnight, adding short-term liquidity that keeps the funding market from freezing.

*snip*

The injection temporarily increases cash reserves for banks by lending funds against Treasuries. It comes at a time when U.S. bank reserves have fallen to around $2.8 trillion, the lowest level in more than four years. The Fed’s move signals concern about tightening liquidity conditions that have been mounting across short-term funding markets.

End.