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.
3 Comments
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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.
2. troy said...
666 ~~~ yup, no point turning a crisis into a drama!
3. bellwether said...
This guy is 19 - impressive blog with some good ideas