[Disestablishmentarian]

Thanks very much for your discussion of repos. I knew there was an overnight spike that embarrassed the Fed, but did not really understand the nature and function of these instrument as well as you have described them.

[smileyface]

nite

[irish guard]

Happy to oblige. Tax payment dates generally cause problems in the markets. I recall years ago when a retroactive tax was passed, all the markets stunk during the period leading up to April 15 because people had to liquidate assets to cover their tax liabilities.

This bump and fed action was clearly more influenced by our deficit as well.