by Fed issued regulatory update January 2019 here: Approximately 10% of Deposits, I never figured it would be that high... somewhat shocking...Deposits September 4 were ,963B (Mike's report has been documenting a recent rapid increase in Deposits as bank lending growth has been pretty solid) and Reserves at Depositories were last seen rapidly dropping towards ,300B on the poorly executed post "Debt Ceiling!" fiscal adjustments so you do the math and see why FF market became dysfunctional and they had to temporarily add B and now are poised to add to that this week...Which will as usual temporarily depress the Leverage Ratio at the Depositories and as usual cause another temporary decrease in observed prices of risk assets...They are going to have to soon increase Reserves
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Fed issued regulatory update January 2019 here:
Approximately 10% of Deposits, I never figured it would be that high... somewhat shocking...
Deposits September 4 were $12,963B (Mike's report has been documenting a recent rapid increase in Deposits as bank lending growth has been pretty solid) and Reserves at Depositories were last seen rapidly dropping towards $1,300B on the poorly executed post "Debt Ceiling!" fiscal adjustments so you do the math and see why FF market became dysfunctional and they had to temporarily add $75B and now are poised to add to that this week...
Which will as usual temporarily depress the Leverage Ratio at the Depositories and as usual cause another temporary decrease in observed prices of risk assets...
They are going to have to soon increase Reserves permanently which will be viewed as more (to these monetarist morons) "QE" or "pumping in money!"...
Which btw more of this (to them) "QE" is exactly what Trump has been hammering them to do!
Trump wins again!!!! How DOES he do it?!?!?!? MAGA double triggers for everybody all around!!!!
