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Bank regulatory asset values falling

Summary:
All this Fed “hawkish” rhetoric already causing a reduction in the Depository regulatory asset values this from H.8 as of 2 Wednesdays ago:Probably down another few $B this week so probably -B or so…4Q 2018 these losses reached about -B equities sold off about 20% so if we’re at -B we’re going to see the current 8% or so reduction at this point… sounds about right…Plus Mike is reporting we’ve gone into a short term fiscal surplus this month with Fed still adding 100s of $B system reserve balances so Deposit liabilities and reserve assets increasing at the Depositories which makes it EVEN WORSE at this time…If Fed keeps up the “hawkish” talk and eventually starts to raise the risk free rates then we’re just going to keep going down until they stop…If Trump were in Presidency he

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All this Fed “hawkish” rhetoric already causing a reduction in the Depository regulatory asset values this from H.8 as of 2 Wednesdays ago:



Probably down another few $B this week so probably -$15B or so…

4Q 2018 these losses reached about -$40B equities sold off about 20% so if we’re at -$15B we’re going to see the current 8% or so reduction at this point… sounds about right…

Plus Mike is reporting we’ve gone into a short term fiscal surplus this month with Fed still adding 100s of $B system reserve balances so Deposit liabilities and reserve assets increasing at the Depositories which makes it EVEN WORSE at this time…

If Fed keeps up the “hawkish” talk and eventually starts to raise the risk free rates then we’re just going to keep going down until they stop…

If Trump were in Presidency he would be excoriating the Fed for such “hawkish” rhetoric at this point threatening to fire them while we’re still in a virus pandemic unemployment accelerating and 10 million people still out of the workforce….  perhaps pushing for tax cuts too…

Biden cognitive impaired and just barely able to read what the monetarists have typed into his teleprompter for him to read…



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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