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Banking Indicators Steady At Record Bubble Levels

The Fed’s balance sheet shrank slightly in the week ended Jan 20 as MBS were paid down. Those paydowns will be replaced as the Fed settles its MBS replacement purchases next month.  There were no other material changes in the data over the past two weeks. Here are the charts that show the record altitudes, or in the case of the fake Fed Funds market, that there is no market.

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