---
title: Lots of questions on the back of the recent stress we have been seeing in markets over the last few sessions
description: "💥 Is there a banking crisis? Nope.\n💵 A dollar funding crisis? Not really — at least, not yet.\n🏦 Is the Fed secretly doing QE again? Also no.\n\nSo… what’s actually going on?\n\nHere’s the real story 👇\n\nAfter the U.S. government raised the debt ceiling in June, it started rebuilding its Treasury General Account (TGA) — basically Uncle Sam’s checking account at the Federal Reserve.\n\nThe target? $850 billion.\n\nWhen money flows into that account, it’s pulled out of the financial system.\nThink of it as a liquidity drain — cash that could’ve been circulating in markets is now just… sitting there.\n\n💧 Roughly $700 billion has been drained so far.\nAnd when that happens, bank reserves fall — which is exactly what we’re seeing today.\nReserves are now sitting near multi-year lows (as a % of GDP).\n\nLess liquidity = more pressure in dollar funding markets.\n\nWe can actually see that stress:\n➡️ SOFR (the Secured Overnight Financing Rate — basically what banks pay to borrow short-term dollars) has ticked higher.\n\nIs it panic time?\nNot really. The current move is small compared to the September 2019 Repo Crisis, when the entire funding market froze and the Fed had to pivot hard from QT to QE overnight.\n\nSo no, there’s no crisis — but there is a tightening squeeze in the plumbing of the financial system.\n\nSource: Tomas\n@TomasOnMarkets"
---

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# [Lots of questions on the back of the recent stress we have been seeing in markets over the last few sessions](https://blog.syzgroup.com/syz-the-moment/lots-of-questions-on-the-back-of-the-recent-stress-we-have-been-seeing-in-markets-over-the-last-few-sessions)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Nov 5, 2025, 12:54:35 PM

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