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Federal Reserve Balance Sheet Update: Week Of November 11
Total Federal Reserve balance sheet assets for the week of November 11 of $2,146 billion ($1
billion lower compared to the prior week's $2,147 billion). Fed assets consisted of:
- Securities held outright: $1,699 billion (an increase of $91 billion MoM, resulting from $6 billion in new
Treasury purchases, $72 billion increase in MBS and $13 billion in Agency Debt), or $2 billion increase sequentially - Net borrowings: unchanged at $248 billion, as no update in the current week.
- Float, liquidity swaps, Maiden Lane and other assets: $198.6
billion,
a $3 billion decrease based on a $1 billion reduction in CPFF and a $3 billion reduction in FX liquidity swaps,
bringing these to another fresh 52 week low of $29 billion. Yet for all the short dollar posturing, one would expect all Fed liquidity swaps to have been retired by now. The fact that even with the dollar at fresh 15 month lows there are CBs that still need the Fed's assistance in providing synthetic (and temporary) swap replacements, raises quite a few questions.
Foreign holdings were flat at $2,917 billion.
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Interesting how the balance sheet amount correlates to the stock market in 2009 ...
Total assets held by Fed holding steady. FX swaps, Maiden Lane, etc. being exchanged for MBS/agencies.
Not too much "quantitative" change in the last several reports.
Liquidity swaps held open for end-of-year reasons?
The article http://nicholsongold.com/2008/11/gold-deflation-hedge/: makes a point .
However in addition to that I have few observations and queries.while the dollar is giving negative real returns for the savings that people are making the salaries arent rising anywhere in the globe vis-a-vis inflation. Understanding the midle class in China and India I can confidently state that they cant compete the US consumer spending.
2009 stock market expansion was most probably the result of institutions looking out for risky assets as FED promised low cost funds( To generate more returns to get more BONUS!). However the demand is more dependant on individuals buying power and his needs.
Without a job and degrowth in his salary, how would he buy more than he can? Where is this demand going to come from? What about the dollar and Asian stock market bubble?
HELP me Tyler!
It would be interesting to see from whom the Fed bought all those MBSs. Oh, I forgot. The Fed doesn't do transparency.
Where is the category that holds S&P futures contracts (and that boatload of IYR)?
Shit, they might as well be upfront about it and break it out separately for us. Maybe that would level the playing field.
I looked up Maiden lane, showing Bear S and AIG, and says this is Maiden lane III LLC. Is this fund going to be a catch-all till perpetuity? Kinda like TARP
LLC just means limited libability corporation which means basically it's basterd given birth by a sick twisted Deleware court room born of iniquity nearly unkillable.
The TALF garbage scow sails monthly and, ironically, looks much like the PPIP scam that Geithner supposedly nixed.
It's a backdoor PPIP. The Fed takes the MBSs off the banks' balance sheets. The banks then use the money to buy the bonds printed by the Treasury and financed by the taxpayers.
Could the feds lend full faith and credit to fannie and freddie -- say sometime in Q1 -- as a substitute for QE2.0?
The chart posted above has been saying for months that the Treasury and MBS/agency purchases have served to change the mix of assets on the Fed's balance sheet. That's helpful to the Fed. The MBS/agency purchases have also helped the Chinese convert some of their MBS/agency holdings into Treasuries. Those are two side benefits in addition to directly supporting the US housing market.
Once the QE1.0 program is complete, the Fed will have converted all or nearly all of their assets to Treasuries, MBS and agencies. At that point, what's needed is to keep support under the housing market (mainly). US Gov support behind Fannie/Freddie could do the trick. Does that also sow the seeds for a future Fed exit of its MBS/agency holdings?
Gld ETF Warning, Tungsten Filled Fake Gold Bars
http://www.marketoracle.co.uk/Article14996.html
How do we know that there is ANY truth to ANY of the data provided here by the Fed? Until the Fed is audited, we DON'T.
GG, of course you're correct. They can pretty much tell us whatever they wish to and we have no recourse. The basic premise beneath everything done (under cover) by the Fed is they are doing so in the best interest of the country.
I'm not an expert in anything other than expecting humans to act like humans. Don't tell me you can give a few individuals the powers of a God and they will act with humility and honor. Sorry, doesn't work for me and it shouldn't work for anyone else. To think otherwise is dangerous.
"In order to maintain our way of living, we must tell lies to each other and especially to ourselves." Derrick Jensen
They're doing God's work. So it's OK.
GG is correct.
Absent an audit and a continued committment to audits once the auditing process is established, one simply is a fool to believe the data from any organization/institution.
People respect what you inspect, not expect.
Tyler
Is there a way for the FED to move the MBSs on its balance sheet to the treasuary? legeal of illegal.
Two ways to fight a deleveraging:
Articles have bemoand the return of high-leverage vehicles. These are being encouraged because, if they succeed, they are a substitute for more printing.
Print-like-crazy is supposed to show up on the Fed's balance sheet. We've got a long way to go.
it is beginning to look like the top half of Bart Simpson's head--
lol
Is there a way - legal or illegal - to move the MBSs n the balance sheet of the fed to the treasusry?