Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Let me rephrase...

Suppose that the repo haircut is x. Then, in order to cover 100 worth of deposits you have to repo 100/(1-x) worth of eligible assets.

In my example x is 5% so I made a mistake of about 0.25%...

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Tue May 10th, 2011 at 04:23:36 PM EST
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