Home » Posts tagged 'fed balance sheet'
Tag Archives: fed balance sheet
Powell, Do You Even Know What The Economy Is?
Powell, Do You Even Know What The Economy Is? To Clarify, Main Street Is Not Wall Street After all the destructive policies we have seen coming out of the Eccles Building, it may be time to ask Fed Chairman Jerome Powell, “Do you even know what the economy is?” All the easing and stimulus has […]
Update on Fed’s QE: The Crybabies on Wall Street, which Clamored for More, Are Disappointed
Update on Fed’s QE: The Crybabies on Wall Street, which Clamored for More, Are Disappointed And five SPVs expired, including the one that bought corporate bonds and bond ETFs. The Fed has now put on ice five of its SPVs (Special Purpose Vehicles) which had been designed back in March to bail out the bond […]
Fed Assets Eke Out New Record for First Time Since June 10. But Repos, Dollar Liquidity Swaps, SPVs Mothballed
Fed Assets Eke Out New Record for First Time Since June 10. But Repos, Dollar Liquidity Swaps, SPVs Mothballed Only Treasury securities and mortgage-backed securities (MBS) are still active. The Fed has now reduced to zero or to near-zero or essentially mothballed and thrown the towel in on three of its five QE and bailout […]
What’s Behind the Fed’s Project to Send Free Money to People Directly?
What’s Behind the Fed’s Project to Send Free Money to People Directly? A lump-sum payment in digital dollars for all Americans during a recession or to raise inflation, as an alternative to QE and negative interest rates, which have failed. By Wolf Richter. This is the transcript of my podcast last Sunday, THE WOLF STREET REPORT. You […]
Fourth Turning Accelerating Towards Climax
FOURTH TURNING ACCELERATING TOWARDS CLIMAX “At some point, America’s short-term Crisis psychology will catch up to the long-term post-Unraveling fundamentals. This might result in a Great Devaluation, a severe drop in the market price of most financial and real assets. This devaluation could be a short but horrific panic, a free-falling price in a market […]
Weekly Commentary: When Money Died
Weekly Commentary: When Money Died Sitting at the dinner table, our eleven-year old son inquired: “If a big meteor was about to hit the earth, how much money would the Fed print?” I complimented his sense of humor. Yet it was a sad testament to the historic monetary fiasco that will haunt his generation. Federal […]
The Fed’s Balance Sheet: The Other Exponential Curve
The Fed’s Balance Sheet: The Other Exponential Curve As the threat of COVID-19 keeps millions of Americans locked down at home, businesses and financial markets are suffering. For example, a survey of small-business owners found that 51% did not believe they could survive the pandemic for longer than three months. At the same time, the S&P 500 posted […]
#MacroView: Is The “Debt Chasm” Too Big For The Fed To Fill?
#MacroView: Is The “Debt Chasm” Too Big For The Fed To Fill? Over the last month, the Federal Reserve, and the Government, have unleashed a torrent of liquidity into the U.S. markets to offset a credit crisis of historic proportions. Here is a list of programs already implemented which have already surpassed all programs during […]
A Major Bank Admits QE4 Has Started, And That Stocks Are Rising Because Of The Fed’s Soaring Balance Sheet
A Major Bank Admits QE4 Has Started, And That Stocks Are Rising Because Of The Fed’s Soaring Balance Sheet There was a period of about two months when some of the more confused, Fed sycophantic elements, would parrot everything Powell would say regarding the recently launched $60 billion in monthly purchases of T-Bills, and which […]
“The Fed Hasn’t Expanded Its Balance Sheet At This Speed Since The Financial Crisis”
“The Fed Hasn’t Expanded Its Balance Sheet At This Speed Since The Financial Crisis” The Fed’s balance sheet is expanding at a faster rate than during QE1, QE2 or QE3. * * * Submitted by Howard Wang of Convoy Investments Has QE4 begun? The $1.2 trillion per month hole in the repo market. In the […]
“Not QE”, Monetization, & “Definitely Asset Inflation”
“Not QE”, Monetization, & “Definitely Asset Inflation” Chart below shows the Federal Reserve holdings of Treasuries, a weekly change (black columns) and total holdings (red line) during QE1, QE2, Operation Twist, QE3, QT, and “Not QE”. Got it?!? This current “Not QE” explosion in QE is like some kind of old time vaudeville act (like […]
Collapse In Global M1 Signals A Worldwide Recession Has Arrived
Collapse In Global M1 Signals A Worldwide Recession Has Arrived By now everyone has seen some iteration of this chart showing that the annual change in central bank liquidity is now negative. Another way to visualize just the Fed’s balance sheet contraction is courtesy of this chart from Morgan Stanley which shows specifically which assets […]
The Fed Is Tightening More Than It Realizes
The Fed Is Tightening More Than It Realizes Before the 2008 collapse of Lehman Brothers, the Fed’s balance sheet stood at $925 billion—mostly U.S. Treasury securities. After 59 months of asset purchases to push down longer-term interest rates, it had ballooned to a peak of $4.5 trillion, including nearly $1.8 trillion in mortgage securities, in […]
Fed’s Balance Sheet Shrinks The Most Since Start Of QT; QE Unwind Hits $321 Billion
Fed’s Balance Sheet Shrinks The Most Since Start Of QT; QE Unwind Hits $321 Billion On Monday, when discussing the two key, opposing forces facing stocks this week, we said that while on one hand stock buybacks will make a triumphant return, as companies with $50bn of quarterly buybacks exited their blackout periods, and the […]
Plunge in Interbank Lending: The Straw that Broke the Fed’s Back
Plunge in Interbank Lending: The Straw that Broke the Fed’s Back Interbank lending took a historic dive. Readers ask “What’s happening?” Let’s investigate. Interbank Lending Long Term The plunge in interbank lending is both sudden and dramatic. What’s going on? Fed Tightening Two Ways The short answer is a straw broke the Fed’s back. A […]
