Reverse Repurchase is horse manure

The idea is that the Fed wants to control the overnight lending rate for non member banks.  They intend to set that rate at half the rate earned by member banks on excess reserves.

But for crying out loud, it is obviously the member banks who set the overnight rate for non-member banks because the member banks have the job of offering demand deposit rates for large institutions.  The member banks set the demand deposit rate at half the rate they earn on excess reserves.  That is why the non-member bank overnight lending market is at .1, and while the Fed has set member bank rates on excess reserves at .25.

Hence, the reverse repo nonsense just sets up a closed loop in the network and will be unstable as hell. The Fed will figure this out in about a week and close the program, watch.