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Federal Reserve Balance Sheet Update: Week Of December 16 - Record Highs
Total Federal Reserve balance sheet assets for the week of December 16 balooned back to a record high of $2,189 billion ($20
billion higher compared to the prior week's $2,169 billion). Fed assets consisted of:
- Securities held outright: $1,807 billion (an increase of $33 billion MoM, resulting $28 billion increase in MBS and $5 billion in Agency Debt), or a $21 billion increase sequentially.
- Net borrowings: $171 billion, a decline of $35 billion from the past fortnight.
- Float,
liquidity swaps, Maiden Lane and other assets: $210
billion,
inline with the prior week, based on a $600 million reduction in CPFF and a $2
billion reduction in FX liquidity swaps,
bringing these to another fresh 52 week low of $14 billion. A notable addition here is the brand new colimn of AIA Aurora and ALICO Holdings, the Fed's brand new AIG assistance program, which has maxed out at $25 billion.
Foreign holdings were at $2,948 billion, a $5 billion increase over the prior week.
Currency in circulation was $924 billion, with a total of $2,036 billion in the monetary base and $1,111 billion in excess reserves with F.R. banks (a number that refuses to go down). Indicatively there was $1,031 billion in MBS and Agencies on the Fed's balance sheet, implying the currency/MBS holdings coverage sunk to a new record low of 89.7%
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This is dollar positive, right? I mean, anything that a rational person would think signaled impending doom, is really dollar positive?!? Maybe we can get a direct, linear relationship between the Fed's balance sheet and the USD index?
Well, according to the people who were today selling gold as fast as they could - you bet it is!
Swell - tomorrow's Friday, good a day as any to pick up some more barbarous relics.
++ Hysterical L-ingOL. People on this site can be so frigging funny. Helps one maintain sanity, even when normally staid and confident solons like Kay Bailey Hutchison start talking about a downgrade in U.S. credit, as she did this morning in bonging Ben B.
Spare a thought for a poor soul who bought some philharmonics for $1159 in November
Damn it I should have kept my powder dry - but I just do not want to be on the wrong side of this come new year.
I just can feel it in my bones that the shit will hit the Christmas Tree.
bird in the hand is worth 2 in the bush
The FED is investing your money in the paper promise of your soon to be unemployed new neighbor whose wife talked him into buying the over-priced chinese dry-wall POS model home in your half vacant neighborhood....and Bernanke is named Time Person Of The Year for this bright idea?
Looking good!
China's Dumping Of The Dollar Has Begun
During 2009, China hasn’t been buying many Treasuries and has been unloading dollars in a way that makes Geithner shiver at night. And other big U.S. debt carriers like Japan may follow suit if confidence is lost. This presentation, courtesy of RBS, takes a deeper look into China’s holdings and associated volumes since 2005. Get ready for shock and awe.
Article:
http://www.businessinsider.com/china-is-unloading-us-dollars-rapidly-200...
Slideshow:
http://www.businessinsider.com/china-is-unloading-us-dollars-rapidly-200...
Looks like the pressure cooker is at maximum pressure and ready to blow. Bring the woman and children inside and say your prayers.
Money creation in the currency and credit derivatives mkt have exploded and did a complete 360 during the last 3 days-currently running at 38 mill per minute-I should have seen this coming but didnt put 2+2 together until I saw the arkansas jack under the dollar today. JPM derivatives book will be astronomical after this carnival week. Yes CD bring the women and children in.
One should always keep this on their browser
http://www.usdebtclock.org/
Remember that the good old grey, stodgy ECB actually has similar issues:
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avfEaCuAvN_4
20 Nov 2009
"The bank “will require at least two ratings from an accepted external credit assessment institution for all” asset- backed securities issued from March 1, 2010, the Frankfurt-based central bank said today in an e-mailed statement. In January, the ECB said it required a rating from one credit assessor."
http://www.bloomberg.com/apps/news?pid=20601085&sid=aCBYRPTsvC9k
17 December 2009
"ECB policy makers may today approve the start of a consultation process with banks, investors and market participants asking them to suggest how residential mortgage- backed securities can be made more transparent, according to two people involved in the process. The Governing Council meets today in Frankfurt.
[...]
Under the terms of the collateral consultation, officials want banks to provide information about individual loans such as the value of the property backing a mortgage, details on cash flow and whether the borrower is in arrears, the people said."
Good point 540---Some of us do know that the collateral backing mortgages in Germany is that the land is not owned by the mortgage holder but by the state.
Any and all ground is leased for 99 yrs--lease payment incorporated into the mortgage payment--if you do not make good on the obligation then the state will go after family members for said obligation--keeps the inlaws from mucking up--what I dont know is wether this applies to other EU member states- if someone does know please post up.
Germany is the backbone of the EU-without them the EU is toast.
http://www.usdebtclock.org/
Awesome. It's hypnotic - like Kaa the boa constrictor and Mowgli - all it needs is some background music.
Pez reminds me of a Tarantino mathematical movie---where are the Inglorious Bastards when we need them..