Excess Reserves

The Next Step In Europe's Negative-Interest-Rate Experiment

"Paper money appears at first sight to be a great saving, or rather that it costs nothing; but it is the dearest money there is." This is the uncomfortable truth of the euro currency experience. As it seems, people in the euro area about to learn an old lesson: namely that unbacked paper money - which is what the euro represents - cannot be trusted.

David Stockman Offers "More Proof Of Janet Yellen's Idiocy"

"Anyone buying stocks based on confidence that the Fed has their back notwithstanding Wednesday’s action surely deserves the pounding just ahead. What Yellen had to say doesn’t even reach the status of babbling; it was flaming incoherence..."

These Banks Will Now Charge You A 4.00% Prime Rate

While most banks are in no rush to pay savers and depositors more, or anything for that matter, they wasted no time in piggybacking on the Fed's rate hike by boosting their own Prime Rate. Here is a list of the banks that rush to increase their Prime rate to 4.00% as of this morning. 

Here Are The Five Main Things To Watch At Today's Fed Meeting

Much is at stake in today's Fed decision, where Janet Yellen is expected to raise interest rates by another quarter point, provide guidance on the pace of future rate hikes, and share its outlook on the economy and whether it is behind the inflationary curve. Here are the main things to look for in today's FOMC decision.

"Trump Trade" Or Just A $200 Billion Liquidity Illusion?

Since the election we’ve heard the rally in stocks characterized as a “Trump Trade” or a “reflation” trade. We think there is a really important element missing from this analysis that could change very quickly over the next several weeks.

Jim Bianco Warns "Inflation Is Going To Be A Game Changer"

"Inflation will soon become a main concern for investors... this will change the basic relationship between stocks and bonds and could set up the financial markets for severe turmoil, like in the late 1990s when the collapse of Long-Term Capital Management sent shock waves around the globe."

Will The Fed Start Reducing Its Balance Sheet? Here Is Goldman's Answer

"We would be very surprised to see a discussion of asset sales under Chair Yellen’s leadership, but a shift to more active management of the maturity of new Treasury purchases could be an option; shortening the duration of new purchases would quicken portfolio runoff once it begins." - Goldman Sachs

Fed Remits Only $92 Billion To Treasury In 2016, Lowest Since 2013

The world was reminded of the cozy relationship between The Fed and The Treasury again today as Janet sent Jack $92.0 billion of freshly ponzi'd net income for 2016 providing the federal government with an important source of funding. This, however, is down almost 6% from 2015 and despite a considerably larger balance sheet is the lowest remittance since 2013 due to doubling the handouts to the major banks to $12 billion last year.