How pathetic is this bunch of clowns at the Fed. Thanks to a couple of special end of month Reverse Repo operations for window dressing purposes, the Fed put out $450 billion of this silly putty paper so that it would show up on bank and money market fund balance sheets for the September 30, end of quarter print. As of today, October 6, the amount outstanding was back to a more normal $130 billion.
What possible legitimate purpose this kind of silliness might serve, I’ll leave to your imagination.
Meanwhile our composite liquidity indicator has risen by all of 1% since a late January peak. That is tight ladies and gentlemen. It’s not sufficient to support an extended rally in stocks. Get your kicks out of this one while you can.
The report for Macroliquidity Investor Monthly subscribers was posted last week.
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