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Is The Fed Fabricating Loan Creation Data?

Tyler Durden's picture




 

One of the more bullish "fundamental" theses discussed in recent weeks, perhaps as an offset to the documented record collapse in mortgage origination - because without debt creation by commercial banks one can kiss this, or any recovery, goodbye - has been the so-called surge in loans and leases as reported weekly by the Fed in its H.8 statement. Some, such as the chief strategist of retail brokerage Charles Schwab, Liz Ann Sonders, went so far as to note that this is, to her, the "most important chart in the world."

This is indeed notable because as we have shown in the past, for nearly five years, total loans and leases within the US commercial system remained virtually unchanged from a level of about $7.3 trillion, first attained when Lehman filed for bankruptcy. And it doesn't take a PhD in monetary theory to figure out that this lack of credit revival (alongside the historic collapse in shadow bank liabilities) is precisely what the Fed's endless QE programs had been, at least on paper, trying to avert.

Of course, if the data represented by the Fed which supposedly is a sample of call reports distributed to commercial banks, is accurate, then it would be a welcome development to the economy as it would indicate that finally lending conditions are easing, and demand for money is rising at the retail level as opposed to just the institutional (where it is merely used to buy risk assets). In other words, it would slowly allow the elimination of the Fed's artificial conditions and removal of the central-planning umbrella.It would also indicate inflation may finally be returning to the economy (as opposed to just food and energy prices).

And logically, since the Fed's data is sourced by the banks themselves, what the Fed is representing and what the banks report quarterly should be in rough alignment.

Unfortunately it isn't.

Now that the Big 4 commercial banks - JPM, Wells, Bank of America and Citi - have reported their March 31 numbers, we can compile not only what the total amount of outstanding loans was as of the end of Q1, but more importantly, what the change in the quarter was. After all, for Liz Ann Sonders it is this change that is "the most important" data in the world.

What we learn is that the Top 4 banks held some $3.14 trillion in loans and leases at March 31.

So far so good. But what is not so good is that the change of this number in the first quarter is not an increase even remotely comparable to what the Fed makes those who read its H.8 statement believe it is. Quite the opposite.

As the chart below shows, in the first quarter, of the Big 4 banks, only Wells Fargo reported an increase - a tiny $4 billion to be exact - in its loans and leases portfolio. All the other banks... saw a decline in their loans and leases holdings.

We show this on the chart below.

We admit that we have taken a sampling of banks, even if it is the four biggest banks in the US, those which account for 42% of all loans outstanding, and a complete analysis would require complete data from not only regional banks, but also foreign banks operating in the US. However, if the four best capitalized banks, flush with trillions in Fed excess reserves, are indicating on their own that they are nowhere near lending at the level the Fed is telegraphing, and are in fact reducing their loans outstanding, why should the others be more generous in their lending activities?

Which brings us to the question: is the Fed fabricating loan level data?

Or, less dramatically, is the Fed merely once again goalseeking its weekly "data" to account for a world in which deposit expansion is no longer running at the pace seen in pre-taper days. It would be logical that the one "plug" the Fed would adjust to balance off its model is to boost lending activity, which would explain why the Fed is suggesting lending is surging.

Unfortunately, lending is not only not surging, it is contracting, if only among the Big 4 banks in the first quarter.

So whether the Fed has an ulterior motive, or is simply fudging for a lowered Fed reserve creation growth trendline, we believe the people deserve an answer: just what is really going on here?

Source: Fed, BofA, JPM, Wells, Citi

 

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Wed, 04/16/2014 - 12:01 | 4665356 nelsonmandella
nelsonmandella's picture

why wouldnt they ?

Wed, 04/16/2014 - 12:08 | 4665381 101 years and c...
101 years and counting's picture

to quote some douchebag from the EU:  "When shit gets serious, you have to lie"

Wed, 04/16/2014 - 12:19 | 4665413 max2205
max2205's picture

Come on Tyler you have to count Belgium damn it!

Wed, 04/16/2014 - 12:24 | 4665427 Battleaxe
Battleaxe's picture

Duh! All Fed data is fabricated.

Wed, 04/16/2014 - 12:26 | 4665440 Pinto Currency
Pinto Currency's picture

 

When you have an institution that fabricates trillions of dollars to bail out banks and does not disclose the data, it is easy to believe that they would also fabricate data.

Wed, 04/16/2014 - 12:29 | 4665456 Pegasus Muse
Pegasus Muse's picture

Is The Fed Fabricating Loan Creation Data?

Does a bear ... ?  (you know the rest)

Wed, 04/16/2014 - 12:53 | 4665540 Oh regional Indian
Oh regional Indian's picture

Bear Spanker was in Mumbai two nights ago for one of his $250,000 engagements. 

If I had known, would i have gone and thrown a shoe? For we know what QE did, he know what QE did, Raghu know what Qe's a doin'...

These people either totally believe their schtick and story or are stunningly con-fidant master manipulators...

Get madder, shockign stuff....Oxycodone+++etc. kill more Americans than Heroin and cocaine combined!!!

40 Americans die every day of them...whoa....wonder what is happening here, in unregulatable India?

http://aadivaahan.wordpress.com/2014/04/15/the-pharmacopic-scam-lies-exp...

The pharmacopic stranglehold allows these people to be so confident in their Huxley-side world.

It's mirror being the Orwellian one. It's Chiral actually....

ori

Wed, 04/16/2014 - 12:55 | 4665584 Herd Redirectio...
Herd Redirection Committee's picture

Its shocking to me that marijuana use is ostracized, and hydrocodone is... Prescribed by doctors! 

Wed, 04/16/2014 - 12:59 | 4665601 Oh regional Indian
Oh regional Indian's picture

It was a master-stroke eh, HR? What about the confusing word "Drug".

Doctor Drug good.

Dealer drug bad.

What about Doctor.

You sick, doctor good.

Doctor your drink, you may get raped/die.

The madness is  built into the language.

To call Marijuana a drug in and of itself is......meaningless? 

Wed, 04/16/2014 - 13:05 | 4665633 Keyser
Keyser's picture

Cooking the books seems to the SOP these days... What else is new in the new normal... 

Wed, 04/16/2014 - 13:28 | 4665770 dontgoforit
dontgoforit's picture

that 135% is how much more the Fed has 'loaned' to the Treasury to cover the unpayable debts...

Wed, 04/16/2014 - 13:39 | 4665833 boogerbently
boogerbently's picture

I can still hear the bobbing heads calling JPM, "Best in breed" !

Wed, 04/16/2014 - 13:56 | 4665937 TruthInSunshine
TruthInSunshine's picture

This essay is an example (of many) why ZH is a must read.

I would bet $1,000 Yellens that if the level of loan creation at the Big 4
too-big-to-fails (which, as mentioned, account for/hold 42% of all aggregate loans) is flat or declining, there is no possible way that this trend is opposite in at the other banks, and of an additional loan creation amount, to "make-up for" the shortfall, so as to do anything other than prove the Fed is fabricating this data wholesale.

Wait for Conspiracy "Theory" #237 regarding'"official" economic data to be proven as Conspiracy "Fact" in the coming months or year (or so).

Wed, 04/16/2014 - 14:25 | 4666047 Manthong
Manthong's picture

..f’n rabble rousers and commie libs on this page..

Geez, who ever even think about accusing the sacred guardians of the public purse of creating money or the accounting of money from nothing?

Wed, 04/16/2014 - 14:35 | 4666080 Ham-bone
Ham-bone's picture

shocking

- Refi's fall 90% +, 40% plus of residential RE transactions are cash only buyers (no loans, no credit)...the only places credit is growing are corporations taking loans to repurchase their own stock, Student loans, and auto loans...

Shocking anyone would beleve something so ludicrous from the Fed...

 

Wed, 04/16/2014 - 14:40 | 4666114 Manthong
Manthong's picture

I will gladly pay you tuesday at .000000000000001 interest for a sawbuck today. 

Wed, 04/16/2014 - 15:41 | 4666423 Iam_Silverman
Iam_Silverman's picture

"I can still hear the bobbing heads calling JPM, "Best in breed" !"

No, no, NO!  You heard wrong.  They were being called "The Best Inbreeds".  Banking is incestuous, as we all should know by now.

Wed, 04/16/2014 - 13:24 | 4665736 RafterManFMJ
RafterManFMJ's picture

Good Lord. Take memo: The entire Economy is fabricated and has been since 1973, and arguably, 1913.

Wed, 04/16/2014 - 13:52 | 4665902 Four chan
Four chan's picture

when all money is confiscated and all currency in circulation is debt what you have is an unsurvivable situation. unless you were the ones confisgating the money.

Wed, 04/16/2014 - 14:43 | 4666138 Manthong
Manthong's picture

"arguably, 1913."

not arguable :-).. on the "books"

America sold down the river..

to the BMF's (banker Mo Fo's) and their slaves, the pols.

Wed, 04/16/2014 - 14:50 | 4666160 Manthong
Manthong's picture

oo.. I can think of two things I would like to cofisguate right now..  :-)

fat fingers and typos can sometimes lead to nifty thoughts or horrid market crashes.

Wed, 04/16/2014 - 12:56 | 4665499 Ham-bone
Ham-bone's picture

 

 

Consider..

Jan '00 -      '07 -          Dec '13

$1 T  --->  $1.6 T ---> $5.6 T (cumulative "foreign" held US Treasury debt)

25% --->     40% --->    55%  (% of notes / bonds held by "foreigners")

1%  --->      1%  --->     25%  (% Fed held notes / bonds...Fed primarily held Bills until '08)

74% --->     59% --->    20%  (% domestically held notes / bonds)

350% increase                         (public outstanding debt, $3.5 T to $12.4 T)

250% increase                         (intra-gov debt, $2 T to $5 T)

6.6% --->    5%    --->   2.4% (net interest rate on debt)

$300B ->  $270B ---> $223B (net interest paid on national debt)

$9.2 T --> $13.7 T --> $16.1 T (GDP = 75% increase);

$5.7 T -->  $9 T     --> $17.4 T (National debt = 305% increase )

A reversion to the average 50yr yields around 7% would produce Treasury yields with gigantic interest payments, of which nearly half would exit the economy to "foreigners":

Interest payments if yields rose (not to mention the effect on RE or other interest rate sensitive parts of our Ponzi...nor to mention bank IRD's) would look like:

5% blended interest payments = $875 B of which nearly half would likely exit the economy. 

7.5%  = $1.3 T

10% = $1.75 T

(btw - total '13 Federal tax revenue = $2.8T)

Now it's is growing among the intelegentsia that since the Fed announced it's taper, rates have gone down, maybe rates can stay low forever...so let's extrapolate and see who will be buying @ these forever low yields???

We have to rule out US domestic purchasers (States, insurers, pensions, etc.) as they cannot deploy their assets against 5yr or 10yr or 30yr US bonds yielding 1.70% to 3.5%, respectively, and catch up from their underfunded current states to meet their 7-8%/yr growth to ultimately meet their payouts.  They are acting rationally.  No buyer here.

Fed - we'll they are tapering to zero and will not monetize the debt.  And heck, they'll likely start to shrink their balance sheet by not rolling over existing...This is rational that the Fed shouldn't cause a hyperinflation via monetizing the debt...No buyer here (wink wink).

This only leaves "foreigners" who apparently don't mind the low yields, don't care the US trade deficit has fallen in half since '07, and apparently should be trusted to act irrationally.  This leaves only Belgium and the like to buy all new Note/Bond issuance plus pick up whatever rollover the Fed or Domestics don't maintain...or plainly put, by 2016'ish this will leave "foreigners" holding somewhere around 75% of all US public debt longer than 1yr.  Any concerns about the path we're on???

Or the other option is the Fed and "foreigners" are actually synonomous and the Fed will actually be holding 75% of all US debt over a year?  At least the interest paid would stay in the Treasury rather than being paid to "foreigners" and exiting the US?

 

Wed, 04/16/2014 - 13:23 | 4665725 mtndds
mtndds's picture

Ok sorry for the stupid question, I am new here.  Why does everyone keep mentioning BELGIUM?

Wed, 04/16/2014 - 13:40 | 4665839 Alien 851
Alien 851's picture

Someone using Belgium as a front to buy up US debt. China quit buying some time back so ....who/what is now the second largest buyer of US debt?  See other ZH post on this date. 

Wed, 04/16/2014 - 14:01 | 4665907 Ham-bone
Ham-bone's picture

Simple questions (and no bullshit, smart-ass answers...lookig for plausible answers):

Fed tapers to zero by year end (and assuming this isn't the Fed reach-around)

who are the buyers stepping in to purchase the $45 B /mo of Notes/bonds the Fed was buying?  and Why???  

Who would need / want more 1yr plus Note/Bond US paper yielding very little and from an "investment" standpoint take a big underperformance vs. other available assets??? 

Who had all the USD cash sitting around that they apparently don't even need to sell (since all markets are near record highs) to bid up these Treasury's??? 

How is this rational since US trade deficits have fallen in half since '07 and thus far fewer exported dollars need be recycled back into imported dollar vehicles???

Wed, 04/16/2014 - 14:53 | 4666190 centerline
centerline's picture

The only logical answer beside this being a massive circle jerk is international capital flows.  Money fleeing even worse economic conditions but not trusting US equities.

Wed, 04/16/2014 - 16:35 | 4666679 Ham-bone
Ham-bone's picture

where is the selling to raise these Trillions of dollars with which to buy these Treasury's??? 

There's only buying everywhere and selling no where...

Wed, 04/16/2014 - 13:29 | 4665751 HardlyZero
HardlyZero's picture

Ham-Bone, very good table of information...When we have picture(s) of the selfie reach-around it will be market shattering.

or maybe the EU, BIS, IMF are involved too (a reach around ring ?).

Who bought the US$300B of treasuries for the last 4 months, mystery buyer ?

Need Pictures.

Wed, 04/16/2014 - 13:41 | 4665840 Battleaxe
Battleaxe's picture

By "reach around ring" do you mean CIRCLE JERK!!??

Wed, 04/16/2014 - 13:54 | 4665918 Four chan
Four chan's picture

a mobius circle jerk.

Wed, 04/16/2014 - 12:42 | 4665529 HardAssets
HardAssets's picture

Fed's Dual Mandate:

 

- Steal from the American people

- Lie to the American people

Wed, 04/16/2014 - 12:01 | 4665357 Gringo Viejo
Gringo Viejo's picture

Show me something, ANYTHING, that isn't a lie.

Wed, 04/16/2014 - 12:09 | 4665386 Pooper Popper
Pooper Popper's picture

Show me something, ANYTHING, that isn't a lie.

obamas a dick!

Wed, 04/16/2014 - 12:46 | 4665549 Money_for_Nothing
Money_for_Nothing's picture

Obama is a STD soaked pussy.

Wed, 04/16/2014 - 13:18 | 4665695 Troll Magnet
Troll Magnet's picture

1. Barry & Eric are CRIMINALS.
2. Michelle is the ugliest FLOTUS in history.

Wed, 04/16/2014 - 12:23 | 4665422 Professor Fate
Professor Fate's picture

I was going to post that identical comment Gringo but you just beat me to it.  There is not ONE lie...It is ALL lies.

Fate the Magnificent
"Push the Button, Max"

Wed, 04/16/2014 - 12:46 | 4665548 The Longest Call
The Longest Call's picture

All lies as they try to disguise the inevitable...

http://perpetualassets.wordpress.com/2014/04/16/glaring-q-e-failure-spot...

Wed, 04/16/2014 - 12:02 | 4665358 ebworthen
ebworthen's picture

The FED fabricates everything; it is a paper mache thug that robs the citizenry and force feeds us glue.

Wed, 04/16/2014 - 12:36 | 4665481 Winston Churchill
Winston Churchill's picture

Thank Dog they are audited.

Oh wait........

Wed, 04/16/2014 - 12:02 | 4665359 youngman
youngman's picture

Just turning Chinese.....we want a number...you make it happen...

Wed, 04/16/2014 - 12:03 | 4665362 Glass Seagull
Glass Seagull's picture

 

 

The difference must be payday loans and Colonial Food Scripp backed "University" of Phoenix student loans. 

Wed, 04/16/2014 - 12:05 | 4665366 flowlessflow
flowlessflow's picture

QE? new debt on its own book?

Wed, 04/16/2014 - 12:06 | 4665367 Seize Mars
Seize Mars's picture

Of course they're lying, for fucks sake.

https://m.youtube.com/watch?v=6_y00kb_jVc

Wed, 04/16/2014 - 12:06 | 4665368 Cognitive Dissonance
Cognitive Dissonance's picture

"Is the Fed fabricating loan creation data?"

Does a bear shit in the woods?

Wed, 04/16/2014 - 12:06 | 4665370 CrashisOptimistic
CrashisOptimistic's picture

Who does the student loans?  Maybe that's the source.

Wed, 04/16/2014 - 14:31 | 4666072 centerline
centerline's picture

And auto loans.

Wed, 04/16/2014 - 12:08 | 4665379 paddy0761
paddy0761's picture

When it becomes serious, you have to lie.”
~
Jean Claude Juncker 

Wed, 04/16/2014 - 12:09 | 4665383 Enceladus
Enceladus's picture

The difference is obviously  a loan to Belgium

Wed, 04/16/2014 - 12:09 | 4665385 spanish inquisition
spanish inquisition's picture

 In addition, Napoleon ordered the almost empty bins in the store-shed to be filled nearly to the brim with sand, which was then covered up with what remained of the grain and meal. On some suitable pretext Whymper was led through the store-shed and allowed to catch a glimpse of the bins. He was deceived, and continued to report to the outside world that there was no food shortage on Animal Farm.  http://www.shmoop.com/animal-farm/lies-deceit-quotes-2.html There is no shortage of borrowing in Fed loan data land!

Wed, 04/16/2014 - 12:10 | 4665390 Kasperfx
Kasperfx's picture

wouldn't put it past them ,, I lost all hope once the data was proven to be disconnected from reality, It's alll one big casino now.  best of luck at the tables:)   

Wed, 04/16/2014 - 12:14 | 4665401 nickels
nickels's picture

Vietnam body-count statistics.

Wed, 04/16/2014 - 12:15 | 4665402 khakuda
khakuda's picture

Would this be the same Liz Ann Sonders who was working for high profile US Trust blowup, Campbell Cowperthwaite who was touting technology stocks at the peak of the bubble?  Blonde beats brains.

Wed, 04/16/2014 - 13:10 | 4665657 forwardho
forwardho's picture

Remember, this is America, where you can reinvent yourself every 5 years cause no one is paying attention.

Wed, 04/16/2014 - 12:20 | 4665414 bagehot99
bagehot99's picture

They don't care - who will check? The news media? They don't have anybody that even understands the significance of such data.

Wed, 04/16/2014 - 12:22 | 4665421 vote_libertaria...
vote_libertarian_party's picture

'Fabricating' is such an ugly word.

 

They are 'adjusting' the data.

Wed, 04/16/2014 - 13:36 | 4665810 dontgoforit
dontgoforit's picture

Smoke & mirror, cook the books classics.

Wed, 04/16/2014 - 12:24 | 4665429 Okienomics
Okienomics's picture

I'll expose my ignorance with this question, but is it possible that these same banks are making more loans than reported because they lend it then immediately sell the note to a government or private entity?  If Bank A originates $1M loan then turns right around and sells it with in a bundle with 100 others like it, doesn't the quarterly statement show zero increase in loan value for the bank?

Wed, 04/16/2014 - 12:24 | 4665431 Drachma
Drachma's picture

I wonder what would happen if there were no rhetorical questions?

Wed, 04/16/2014 - 12:27 | 4665442 Bunga Bunga
Bunga Bunga's picture

Don't worry, central planning has a fix for that.

Wed, 04/16/2014 - 12:31 | 4665460 Darth Raider
Darth Raider's picture

Que

Wed, 04/16/2014 - 12:32 | 4665464 Luffk73
Luffk73's picture

Quicken Loans must have had a heck of a first quarter because of their $1 billion NCAA perfect bracket contest.

Wed, 04/16/2014 - 12:33 | 4665466 Darth Raider
Darth Raider's picture

+

1

=

135

Wed, 04/16/2014 - 12:33 | 4665468 orangedrinkandchips
orangedrinkandchips's picture

look, this "bullshit" market will not end UNTIL the bond market cuts out these companies...THAT IS THE CARRY TRADE......Twenty-five BPS loans and you buy your own risk assets with it.....

 

no longer loan/interest for banks and companies...no....usd/jpy....nah.....it's the corp bond market.

 

Why buy the cow when you get the sex for free?

Wed, 04/16/2014 - 12:36 | 4665483 TideFighter
TideFighter's picture

Cow sex? EEuuuuuuuww!

Wed, 04/16/2014 - 12:36 | 4665478 Schmuck Raker
Schmuck Raker's picture

"... the people deserve an answer" ROFLMAO

Where do you guys get this stuff? Golden![Tears in eyes]

Wed, 04/16/2014 - 12:40 | 4665515 PlusTic
PlusTic's picture

a better question is "what data aren't they fabricating?"  this whole thing is a scam...

Wed, 04/16/2014 - 12:40 | 4665518 Rising Sun
Rising Sun's picture

The Fed is operating like the CEO of a penny stock company.

 

Good job Yellen you wretched bitch!!!!!!!!!

Wed, 04/16/2014 - 12:43 | 4665536 besnook
besnook's picture

gotta make the model work. in a fiat world it is just numbers. the only thing that matters are the cash obligations and that depends upon the capacity of the printing press.

Wed, 04/16/2014 - 12:51 | 4665563 Van Halen
Van Halen's picture

Is the Fed fabricating loan creation data?

 

The same Fed that fabricated reasons for going to wars? Testing poisons on civilians? Spying on Americans? Using the IRS against political opponents? Purchasing massive quantities of arms and hiding them all over different agencies? Faking employment numbers? Looking the other way when big political donors get in trouble?

THAT Fed?

Wed, 04/16/2014 - 12:56 | 4665587 waterhorse
waterhorse's picture

So whether the Fed has an ulterior motive, or is simply fudging for a lowered Fed reserve creation growth trendline, we believe the people deserve an answer: just what is really going on here?

 

Easy.  Crony fucking capitalism.

Wed, 04/16/2014 - 13:05 | 4665632 Bryan
Bryan's picture

The problem is that we try to distill the 'health' of the economy down to a few simple numbers that the low-information voters and traders (and HFTs) can digest.  So bang, you get some rounded up/down 'number' that is supposed to be like a barometer of the whole economy.  However, in the real world there is no such thing as 'the number' to give the information the low-info people want, so they just make stuff up that sounds plausible to anyone who is naive enough to believe.  I hope ZH readers are not in the group.

Wed, 04/16/2014 - 13:09 | 4665651 Seize Mars
Wed, 04/16/2014 - 13:18 | 4665694 Inthemix96
Inthemix96's picture

Is the Fed fabricating loan creation data?  Why yes, of course it is.

The lying, deceitful mother fucking criminals who have lived far too long for my liking.

Its about time these monsterous bastards were hanged like the filthy fraud infested swine they so surely are.  A plague on all our houses, a burden to us all, the non-producing, leachy fucking parasitical scurvy what they are.

Cunts, to the very fucking man.

:-)

Wed, 04/16/2014 - 15:15 | 4666304 Manipuflation
Manipuflation's picture

+1

Wed, 04/16/2014 - 13:24 | 4665709 Itchy and Scratchy
Itchy and Scratchy's picture

Is there actual real FED data? Seriously?

At least the Global Warming numbers are spot on!

Wed, 04/16/2014 - 13:32 | 4665794 BGO
BGO's picture

The fed is run by liars? THE HELL YOU SAY!

Wed, 04/16/2014 - 13:36 | 4665814 thepigman
thepigman's picture

It's not fabricated. It's financing for a ton of excess inventories. Bearish.

Wed, 04/16/2014 - 13:56 | 4665872 thepigman
thepigman's picture

I want at least 25 green arrows for telling you.  Liz Ann' so dumb:-)  Remember all the inventory in the 3rd quarter

GDP? It's still out there. Bwahahaha.

Wed, 04/16/2014 - 13:54 | 4665923 andrewp111
andrewp111's picture

Maybe it is stock buybacks. Bullish!!

Wed, 04/16/2014 - 13:36 | 4665817 kchrisc
kchrisc's picture

By my bear's insistance on shitting in the woods, I would say "yes."

Wed, 04/16/2014 - 13:45 | 4665867 T-NUTZ
T-NUTZ's picture

Maybe the Belgians borrowed it.

Wed, 04/16/2014 - 14:00 | 4665899 Itchy and Scratchy
Itchy and Scratchy's picture

They print 'make believe' currency to finance 'make believe' data points!

Wed, 04/16/2014 - 13:53 | 4665915 andrewp111
andrewp111's picture

Just because the biggest banks aren't lending doesn't tell you anything. The biggest banks are also the most troubled beneath the surface. I have a hard time believing that the Fed would simply make up data. The question then becomes, just who is lending?? Regional banks? Foreign banks? Perhaps the US Government is.

Wed, 04/16/2014 - 13:57 | 4665940 Cthonic
Cthonic's picture

On the liabilities side, look at that year over year growth in 'net due to related foreign offices'!  ~ $400B

http://www.zerohedge.com/news/2013-06-10/how-fed-courtesy-foreign-banks-...

 

Wed, 04/16/2014 - 14:00 | 4665954 Philalethian
Philalethian's picture

"<National Report>Washington, DC–While Cliven Bundy’s decades long battle against the federal government over grazing rights on his Nevada ranch continues, news from the nation’s capital has confirmed that Rep. Darrell Issa, chairman of the House Oversight and Government Reform Committee, has launched a full federal investigation into President Obama and Senator Harry Reid’s involvement in the attempted land grab by the Bureau of Land Management (BLM)."

http://nationalreport.net/issa-launches-federal-investigation-obamas-inv...

 

Wed, 04/16/2014 - 14:09 | 4665986 udaman
udaman's picture

Go for it!

Wed, 04/16/2014 - 14:10 | 4665993 Comte d'herblay
Comte d&#039;herblay's picture

Do chickens have beaks?

Wed, 04/16/2014 - 14:15 | 4666010 Itchy and Scratchy
Itchy and Scratchy's picture

God help us if the decide to start telling us the truth!

Wed, 04/16/2014 - 14:20 | 4666026 Duude
Duude's picture

No institution in all the world is better prepared to fake an economy as is the US Federal Reserve. We can see evidence proving a conspiracy but nothing is as definitive as we'd like. Very difficult to get your hands on the smoking gun without a Fed president breaking rank and stepping forward.  One day, perhaps, but I won't be holding my breath. 

Wed, 04/16/2014 - 14:29 | 4666065 wagthetails
wagthetails's picture

i'm sure the Fed is even surprised with what they can get away with.  Mind as well show that Mars is increasing its holdings of treasuries. 

Wed, 04/16/2014 - 14:45 | 4666151 Manipuflation
Manipuflation's picture

I haven't seen this link pop up on ZH before but I have a real gem here.  I'm not sure how I found it exactly but I was searching for a soveriegn debt related issue that someone else had brought up on another board.  I couldn't help but look at this site so I drilled down and found this:

http://www.treasurydirect.gov/kids/art/tv/tv_03.htm#posterdisplay

 

Seriously?  It's the kids page?  I love the debt quiz on the left sidebar.  Then you have the coin collector PSA.  So they want kids to tell their parents to buy US savings bonds?  And look, it's another .gov site so you and I are paying for this bullshit again. 

Wed, 04/16/2014 - 15:12 | 4666291 Iam_Silverman
Iam_Silverman's picture

Well, the Credit Unions must be pretty busy then...........

Wed, 04/16/2014 - 16:43 | 4666703 elwind45
elwind45's picture

Banks aren't holding any new fed paper past some reporting date or fed is making a lot of swaps(loans) available to oversea primary dealers to get some yield and grease the union on workers dime?
Big four squaring books quickly

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