Thursday, Jan 29, 2009

This years news that somehow slipped through the net

Dormroom derivatives: Profiting From Bernanke's Super-Fed and Obama's Newer Deal

An in depth appraisal of the bigger picture with many thoughtful comments to widen it's value as an info resource.
Less than $40 billion a year ago, the excess reserve deposits held by the Federal Reserve has ballooned to $860 billion. The banks can also deposit printed money into a Fed category called “Deposits with Federal Reserve Banks, other than reserve balances,” which is what the Supplementary Financing and General Accounts also fall under.
The “Other” subsection of these deposit accounts, which can be construed to represent bank deposits, has increased from $281 million in September to $15 billion today. Both the reserve and non-reserve deposits comprise another huge pool of excess liquidity on the Fed's balance sheet that doesn't immediately affect circulated currency.

Posted by troy @ 11:13 AM (351 views) Add Comment

3 Comments

1. 51ck-6-51x said...

- and if this liquidity were to suddenly feed round the real economy think of the inflation. Let's hope no politician finds the magic instantaneous cure and that we have a slow recovery.

Thursday, January 29, 2009 11:28AM Report Comment
 

2. troy said...

666 ~~~ yup, no point turning a crisis into a drama!

Thursday, January 29, 2009 12:45PM Report Comment
 

3. bellwether said...

This guy is 19 - impressive blog with some good ideas

Thursday, January 29, 2009 05:02PM Report Comment
 

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