Reverse Repos Went Crazy Last Week On Fed Parlor Tricks

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.

Macroliquidity Pro Trader weekly subscribers (or Professional Edition), click here to download complete report in pdf format.

The report for Macroliquidity Investor Monthly subscribers was posted last week.

You can now subscribe to this report as part of the Macroliquidity Pro Trader Weekly or Macroliquidity Investor Monthly on a standalone monthly or weekly basis.

Enter your email address in the form to receive email notification when Macroliquidity reports are posted. Select the reports for which you want to be notified from the list in the form.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also provide analysis and charts for David Stockman's Contra Corner which I developed for Mr. Stockman. I’ve had a wide variety of finance related jobs in the past 44 years, including a stint on Wall Street in both analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.