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Federal Reserve Balance Sheet Update: Week Of January 28 - New Record
The Federal Reserve's balance sheet hit a new all time record of $2.273 Trillion in assets, after a $13 billion increase in MBS and Agency purchases week over week.
- Securities
held outright: $1,913 billion (an increase of $67 billion MoM,
resulting from $64 billion increase in MBS and $3 billion in
Agency Debt), or a $7 billion increase sequentially. - Net
borrowings: $165 billion. Number for the January 28th week has not been updated. - Float,
liquidity swaps, Maiden Lane and other assets: $196
billion. The CPFF program was was at $11.2 billion, another fresh all time low. FX liquidity swaps declined
by $1.075 billion to practically 0. Maiden Lane I
and Maiden Lane II were at $26.8 and $15.4
billion, while Maiden Lane III continues pretending it has value and came at $22.5 billion.
Foreign holdings declined by $7.5 billion to $2,925 billion.
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What a mountain of crap!
yeh and guess who is taking a big bite on this shit sandwich?
It looks like the Fed's balance sheet could use a Midol.
the propoganda outlet cnbc is pushing this "accord" that "could" be coming between the treasury and the Fed. lies man doesn't say anything that is not whispered in his ear.
And ink manufacturers and paper companies rejoice nationwide. With Ben Bernanke's reconfirmation, over 1000 jobs were created or saved.
and still the market tanks..what do they plan on doing with that stuff?
It doesn't matter.
It's a "faith-based" currency.
Like any smart trader, they use all those dollars to wipe their a$$ets.
Can we give Maiden Lane III an emmy a tony and a nobel peace prize to bolster it's lagging self esteem? It's stopped showering and going to work as a phone sex worker at LIBOR's Fantasy Emporium.
Fed balance sheet is like having a big fat ass. Only thing to be sure of is that it will get bigger. Much bigger.
I can't wait till the graph is all filled up with perty colors! This will never change, what you see now will be there forever.
But as long as it's a precious custom of the way we do things that nobody dares goes against it'll be alright.
Any update on the Schd. A?
Wouldn't it be easier to only post a message if/when the Federal Reserve balance sheet DOES NOT hit a new record for the previous week?
hmm... OK
It's only until everyone gets back to work...
Hey ZH, can you publish the average sell side block size for the last 9 trading days. Maybe just the S&P 500 or all xchanges in a breakout.
You know where I'm going with this - and compare the block sizes
pre last correction.
that chart says one thing to me, "buy gold"
early & often!!
Fed Balance Sheet = "To infinity and beyond!"
Thin air bellow. We are ready for a mini crash on the markets. Check the charts. And btw feel free to follow the blog i apreciate. Thanks...
http://midasfinancialmarkets.blogspot.com/2010/01/um-vazio-por-preencher...
LOL, everybody is waiting for a mini crash, or,
market up.
But never the market is doing the expectation.
So what?? A big cash??
If you want to break free from the Private Banking Scam, just follow the lead from a candidate from Florida...the real solution, just apply to ech state and to the Federal Goverment. Time to break the shackles of the private banking system...
The era of the commercial banking system is over because of:
In contrast, the Khavari Economic Plan, proposes a state run bank that will:
We will put the power of modern banking to work for the people of Florida, not for Wall Street.
Over the years, interest has been the biggest cost most families have had. Interest paid to the bank means less money for your family. Reducing interest costs can save a family hundreds of thousands of dollars.
Scenario 1 Let’s take a $100,000 mortgage, for example. With a 30-year fixed rate 5.5% mortgage, your monthly payment is $567.79 and you will pay $104,404.40 in interest on that loan.
Scenario 2 With a 2% fixed rate 15-year mortgage, your payment would be $643.51, the total interest would be only $15,831.80 – and the mortgage would be paid 15 years sooner! You would save 88,572.60 in interest. After you’ve paid off your mortgage, if you continue to make monthly payments of $643.51 to a BSF savings account earning 5% interest, at the end of 15 years you will have more than $160,000 after taxes in your account—just by having your mortgage from the Bank of the State of Florida.
In scenario 1, after 30 years of payments, you would own your house. Given scenario 2, after 30 years of payments, you would not only own your house, but also have more than $160,000 in savings.
How could the BSF do this? It’s called “fractional reserve banking,” the same principle all banks use to operate. If you have $100 in reserves, you can loan out $900 or more. That means you collect interest on $900 but you pay interest on only $100 at most. If the bank pays you 2% for your CD and lends it at 5% on 9 times as much money, you can see this is a really good deal – for the bank.
Now our Bank of the State of Florida does not need to be greedy. It is not going to get involved in shenanigans like bundling and selling mortgages, taking out weird insurance policies and general practices that have caused the mess we are in today. When we make a mortgage, that asset remains right on our books and the paperwork is right there on file. We are going to pay good dividends and the highest rates in the market for long term deposits. We are going to loan out 9 times our reserves. And we are going to make billions of dollars for the State Treasury while we save Floridians a trillion dollars—and that trillion dollars becomes many trillions in Florida’s economy.
Let’s say we pay 5% for our $100 and loan out our $900 at 2%. We pay out $5 in interest, and we take in $18 in interest. Can we make money at that? You bet we can.
We could make the $3.6 billion we are short this year on just a couple of million 2% mortgages. We can do even better on 3 – 4% commercial financing and vehicle loans.
And all the money the bank earns goes directly into the State Treasury, to work for Floridians, not to Wall Street.
Where do we get the reserves? The State of Florida has billions invested with Wall Street. 5 or 6% guaranteed looks pretty good these days compared to a 50% decline in the stock market. Look at what long-term bonds are paying, look at CD’s—we will have no problem attracting all the long-term deposits we need to get started, simply by paying good rates.
Now look what happens. With a 2% fixed rate 15-year loan, the buyer has paid off over 11% of the principal within 2 years. That means we have more than enough reserves to make a new mortgage for someone else, without having to pay interest for the reserves! (In comparison, a 5.5% 30-year loan takes 7 years to pay 11% of the principal).
Now some people might think that low interest rates will just raise the price of homes. That would be true if the 2% loan was for 30 years. But the payment on the 2% loan for 15 years is a little bit higher than the payment for 5.5% 30 years, so this tends to hold prices down. It also tends to eliminate speculation that messes up the market every time. As long as prices are stable, we can offer mortgages with low down payments, so homeownership can be as easy as paying rent.
What the Bank of the State of Florida does is transfer hundreds of billions of dollars away from Wall Street directly into the pockets of Floridians by reducing interest costs… and it puts hundreds of billions into the State Treasury, too. We will have stable, fair prices for homes and take 15 years of slavery out of the process of owning a home.
Consumer financing is another area where Wall Street and the big banks are costing us way too much. Banks charge huge interest on credit cards, for example, where the cost of money to the bank is really zero. If a family has $10,000 in credit card debt at 25% interest, that’s over $200 per month in interest alone. At 6%, the monthly interest is only $50. This family could reduce monthly payments by $50 and pay off the debt years sooner. The State earns billions of dollars per year while saving Floridians billions and billions more.
The Bank of the State of Florida will earn billions of dollars per year for the taxpayers of Florida, not Wall Street fat cats. At the same time it will reduce interest costs and save Florida families hundreds of thousands of dollars per family. Who needs that money more? You or Citibank?
The Bank of the State of Florida can handle checking accounts and ATM’s too. The other banks will have to become competitive, and there is no reason why they cannot.
Couldn’t the federal government do the same thing? Actually, the federal government could do even better and they could do it immediately at huge benefit to the U.S. Treasury. Do you think we should wait around for them to do it? We can have this program in effect in Florida within a year, at no cost to the State
Um, yeah. No thanks.
thanks, from Marbella, spain
That worked REAL WELL in the Great Depression of 1837-1842. We never learn.....
dr. manhattan, why do you feel the need to carpet-bomb every zh post with your excrement? can't you just put it on one? why don't you submit a guest post instead of taking up a whole page of my browser with your nonsense on every td post?
your state is a piece of crap and no small part of the problem.
like he said, no thanks
I would argue that a fiat based system, or a virtual currency system, inherently needs to be run by the sovereign for the benefit of its citizens. The alternative is what we have now, privatized corporate/profit minded usurers running monetary policy.
If you go to a commodity backed monetary system you could get around the influence issue that creates the need to have a nationalized banking system of course, but commodity backed currencies have their own issues. The only way this works is a "basket" system, perhaps an energy unit, and all players or all major players would need to sign on in agreement; difficult.
A well managed, completely transparent, virtual currency system managed by sovereign institutions for the benefit of the people themselves could lead to a period of near utopia and a way of deriving revenue free from taxation. (This is essentially the idea behind colonial scrip, btw.)
Admittedly I'm no banker, Doc, so my comments don't come from a depth of knowledge about finance. I would just like for the nay-sayers (the fella who has a pact with Beelzebub, Mr. Galt who apparently resides in Florida these days, and the TeriyakiDude) to put some numbers behind their comments. Specificity is the request, so education is the outcome. Thanks to all you guys (or gals) in advance.
No depth of knowledge here either. "In my opinion" free markets work better than central banks. With the added benefit of not being, you know, authoritarian.
+100. what dr. manhattan has described is an extreme, state-centric socialized banking system. you want the system really not to work? state-controlled banks is your answer my friend. i am all for curtailing the power of the federal government in general, but the notion that floridian politicians or their financially savvy cronies would design such an elegantly non-competitive system is pure crazy-talk. and i'm still annoyed by this guy thinking his idea is so compelling that he has to post this lengthy nonsense on every zh post in the last what like 12 hours now. authoritarianism is not desirable on the federal level, nor on the state level
Rocky, open a history book. The Specie that was created in the 1830's Depression by the states and state run banks created such a disaster that the people ended up eating sawdust sandwiches (literally) and enhancing one of the largest real estate crashes in our nation's history. Florida is a disaster because we refuse to accept the final reset to real market values and the banks are not willing to take the hits necessary on the residential and CRE holdings to wash this out. Right now between Manatee and Collier counties in SW Florida we have 22 zombie banks that for some reason the FDIC is scared to shut down or can not find buyers for them. Yet we allow them to operate, bleed cash and continue the nonsense that created a large portion of the nonsense the nation has been enduring now. The OP with the book he posted is such utter nonsense that I refuse to get caught up in an argument about trying to determine if a butterfly's butt is on the top of it's body or the bottom.
There are bigger fish to fry other than Area 51 bullcrap ideas like his. State run banks are historic disasters in every aspect of our nation's history and if you need any proof, take the time, do some research and read the balance sheets and quarterly reports of the FHLB's.
All right! Now that's an answer. It appears that my lack of financial matters parallels to my knowledge of history. Thank all 3 of you for your responses. Can you recommend a good work on the era of state banking? I see one from research: Peter Temin, The Jacksonian Economy. Any others? Your willingness to help is appreciated.
They claims to be a private enterprise, so I say fuck em!
Bernanke: Need US dollars for startup? Move to New Zealand to get some.
http://www.youtube.com/results?search_query=bernanke&search_type=&aq=f
The youtube reference is to the one called:
Florida congressman Alan Grayson laughs in Ben Bernanke's face - priceless!
The youtube reference is to the one called:
Florida congressman Alan Grayson laughs in Ben Bernanke's face - priceless!
Tyler: could the increase be due to massive buying of common equites of some of our finer regional banks? you got your STI (GS conviction buy list), FITB, HBAN (a cramer favorite in additon to CIT and Bear), KEY, BBT, ZION, PNC, etc, all real beauties.
you're such a good man making an old fart's day!
The Invisible Hand, DH....??
Agree the prop is in on Banks out of absolute need to keep the recovery theme in full play. PPT simply laid off the handle until the Bernanke thing got done and thusly also keep the tape in an idiotic but sensible range. That Federal deficit spike is a cog in the wheel too.
Equity markets are wired tight to all Beltway moves. Fuck the technicals. The game is all about Uncle Sugar now.
Keep your hands off ZION. She is my LDS, CA-RE, SWBT->AMEGY, UT-RE late to the wake POS!
Ohh, and I love her so (in and out hard and fast).
...unexpectedly...
The Power Lies within the Sovereign States..
the founder fathers knew this to be true.De-centralizing power was the key for such a strong United States.
Local economies run by local communities governed by democratic states.
Someone posted this a while back...some more pretty graphs in there.
http://www.sitemason.com/files/kNDxkc/sub012010.pdf
Reserves, according to January 27th's H.3, were up from two weeks ago. They're now at slightly above the level they were at as of December 30th.
Has anyone noticed that the borrowed component of reserves has been shrinking steadily? It's now $125.300 billion. As of March, when the QE program was announced, the borrowed component was $612.112 billion.
Obviously, only part of the securities were bought from member banks. But, the shrinkage of borrowed reserves suggests that the banks who did sell into the QE used the proceeds to pay down the loans that funded their borrowed reserves.
The QE program is clever in its own way: killing one more bird with the same stone by allowing the banks to pay down their reserve debts. As of Jan. 27th, free and clear reserves total slightly more than one trillion dollars. ($1001.263 billion.)
As to ulterior motives: if one of them was to get the banks paying down their reserve loans, then the case for QE2 is going to be weakened. The banks no longer need that kind of help.
I got a call from a credit card counseling company this morning. They told me they could wipe out the $35,000 balance on my credit cards because of some Fed program that will buy credit card debt. Finally, a government program for the little man.
Dude - if you have $35,000 in CC debt, it's time to apply for a job at the Fed!
Can you really call this a balance sheet? Isn't it more of a record of how much money has been printed in exchange for assets that are worthless?
ZeroHedge is a sham. I can't believe they rip off Morgan Stanley's charts and writing.
someone finally said it
If you don't like the site, don't read it. I LOVE the site.
I can't believe they would do something as awful as disseminate news. They should go to special paper boy hell where nobody pays for you to get up at 4 am and deliver their paper.
http://www.youtube.com/watch?v=y_540iIAa4I
Well all I got to say is the Fed may have paid $2.3 T BUT, it's only worth $750 B.
At a growth rate of 2% or do it will take 50 years to be able to reach 2.3 T.
Factor in 50 years of modest inflation and it will still be worth 750 B in today's dollars, if the dollar is still used as a measurement.
Bamadollar coming soon to yor slum.