While everyone clocked out for Friday, On October 31st, another subprime lender, Bayside Credit is no longer originating loans.
We updated our clients on the impacts today.
Another “isolated” event, for sure.
— Unicus (@UnicusResearch) November 2, 2025
In October 2025, the financial world was rocked as PrimaLend Capital Partners, a leading subprime auto lender, filed for bankruptcy—becoming the third major subprime lender to collapse this year. In August, Automotive Credit Corporation abruptly halted all new loan originations indefinitely, citing financial strain. Just weeks later, Tricolor, another major player in the sector, filed for bankruptcy, followed now by PrimaLend.
The news sent tremors through Wall Street and raised urgent questions about the stability of the $1.66 trillion U.S. car loan market. As missed payments mount and lenders falter, the risk of a broader financial crisis looms, echoing the turmoil of the 2008 housing collapse but with cars at the center.
THE FED’S $50 BILLION SECRET
On October 31 2025, the Federal Reserve injected $50.35 billion overnight through its Standing Repo Facility. By November 2, it vanished.
This was not QE. This was something more dangerous.
The trigger: SOFR hit 4.31%, breaking the Fed’s 4.00% ceiling. The correlation between such spreads and SRF activation is r=0.8. This is mathematical certainty.
Bank reserves have collapsed to $2.8 trillion. Just 10% of GDP. The exact level that triggered the 2019 crisis.
The Fed has institutionalized emergency response. What required panic measures in 2019 now happens automatically.
The consequences rewrite finance:
Monetary policy is now binary. Markets function or hidden liquidity activates. There is no middle ground.
The Fed enables $35 trillion debt to grow without disruption. This is fiscal monetary fusion disguised as technical operation.
Bitcoin rose 1.7% following the October spike. This was not coincidence. All risk assets now trade with a hidden put option.
Three futures now dominate:
Baseline: Sporadic activation prevents crisis but creates dependency.
Stealth Expansion: Persistent usage becomes permanent shadow QE.
System Break: The $500 billion daily cap proves inadequate during real stress.
The truth is undeniable. The Fed will not allow overnight funding markets to break. They will inject liquidity without announcement or accountability.
This is the new monetary regime. Your investment thesis must adapt or perish.
Watch SOFR FFR spreads. When they widen, the invisible bailout begins. This is your alpha signal. This is your warning.
The next crisis will not appear in headlines. It will emerge in the plumbing nobody monitors.
Until the day everyone is watching.
This changes everything.
Read my full article here and subscribe
https://open.substack.com/pub/shanakaanslemperera/p/the-federal-reserves-50-billion-secret?r=6p7b5o&utm_medium=ios&utm_source=post-publish
THE FED’S $50 BILLION SECRET
On October 31 2025, the Federal Reserve injected $50.35 billion overnight through its Standing Repo Facility. By November 2, it vanished.
This was not QE. This was something more dangerous.
The trigger: SOFR hit 4.31%, breaking the Fed’s 4.00%… pic.twitter.com/O2eTHN1ZIW
— Shanaka Anslem Perera ⚡ (@shanaka86) November 2, 2025
We’ve had like a 100 “OMENS” since 2008 that have meant squat.
Just saying https://t.co/Lzh9yOS9yd
— QE Infinity (@StealthQE4) November 2, 2025
Scott Bessent: “I think that we are in good shape, but I think that there are sectors of the economy that are in recession, and the Fed has caused a lot of distributional problems with their policies.”
Discretionary businesses like Chipotle are seeing reduced consumer spending… pic.twitter.com/kYlrub8Ikz
— StockMarket.News (@_Investinq) November 2, 2025
JPMorgan, $JPM, Chase CEO Dimon has said that gold could rise to $5,000–$10,000.
Do you agree?
— unusual_whales (@unusual_whales) November 2, 2025
Half of America’s money is now in stocks
U.S. HOUSEHOLDS NOW HOLD A RECORD 52% OF THEIR FINANCIAL ASSETS IN EQUITIES — MORE THAN DOUBLE SINCE THE FINANCIAL CRISIS AND ABOUT 5 POINTS ABOVE THE 2000 DOT-COM BUBBLE LEVEL
— First Squawk (@FirstSquawk) November 2, 2025