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Bank Capital at 1 year low

Summary:
Fed interest rate policy reducing prices of banking system HQLA to a new 1 year low…  hence bank capital (A-L) is being degraded as liabilities remain constant…. equity index prices back to same levels in consonance as the sum of all asset values are regulated as a fixed multiple of bank capital …Fed rate policy is working to reduce prices of bonds and equities and other financial assets…

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Fed interest rate policy reducing prices of banking system HQLA to a new 1 year low…  hence bank capital (A-L) is being degraded as liabilities remain constant…. equity index prices back to same levels in consonance as the sum of all asset values are regulated as a fixed multiple of bank capital …


Bank Capital at 1 year low


Fed rate policy is working to reduce prices of bonds and equities and other financial assets… 


Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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