Traders Panic-Buy Stocks Into The Close Despite Crude And Credit Crumble
Artist's impression of Fed credibility...
Since The Fed unleashed its rate-hike, things for the confidence-inspiring awesomeness have not gone well...
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US Federal Reserve
Bank Counterparty Risk Surges To 4-Year High
In September, interbank credit markets flashed a quick and brief warning that something was up... and Janet folded. Three months later and following The Fed's oddly-timed rate-hike, interbank counterparty risk - as proxied by the TED-Spread - has spiked over 45% in 2 days, the most since Sept 2008 (Lehman).
We Are Now Entering The "Discovery" Phase Of Financial Collapse
Submitted by James H Kunstler via Kunstler.com,
The Federal Reserve Will Hand Out $11 Billion In Riskless "Profits" To Foreign Banks In 2016
As a result of the Fed's balance sheet expanding to $4.5 trillion over the past 7 years, the most direct consequence has been the increase in excess reserves held at various banks to just over $2.5 trillion. This, as we have shown before using the Fed's H.8 data, means that cash held by various commercial banks has risen proportionately, and as shown in the chart below, there has been a direct correlation between the amount of excess reserves in the system (shown by the black line) and bank cash holdings.
The Fed's Confidence Game Is Ending
Submitted by Joseph Calhoun via Alhambra Investment Partners,