Can anyone explain this chart? <img src="http://research.stlouisfed.org/fred2/data/BOGNONBR_Max_630_378.png">
I know the big spike down was because of the TAF. My question is raised on that massive swing back positive.
That bullshit thing known as "TARP" - which really ended up being about the gov't "buying into" the banks for "preferred shares" has "recapitalized the banks"....so, now they look like they have reserves - total bullshit! They have taxpayer money that they now call their own reserves. The "TARP" and the alphabet soup that the Fed has out there now to prop up failed banks is what is driving this number up. At least that is the way it looks to me - I could be wrong. -gastropod
Welcome to "US Politico Economics"..... It was generated at the same place they generate the "Unemployment numbers"...... "What they don't know....don't hurt 'em ".... ............................................................................................. However this chart is very telling.... It is a clear admittance that the major banks "blew out" their accounts....by basically levering CCC illiquid debt.... Thereafter.....the Fed stuffed their accounts with paper that was freshly inked....represented by foreigner's comeupance.... Would it not be even funnier if the foreigner's money was "freshly inked" as well ?