Bubbly Banking Data Defies Shrinking Fed Balance Sheet

The Fed has begun shrinking its balance sheet and we are finally seeing the numbers to prove it, not just the talk.  Those numbers are small so far, but the rate of withdrawal doubles this month, and will go up by $10 billion per month every quarter until it hits $50 billion per month in October.

It hasn’t happened yet, but at some point during this period of ratcheting up of the pressure, the stock market should start to roll over.

Other banking indicators show that market conditions remain bubbly, and risky.

Here’s what to watch  and what you need to know.

Macroliquidity Pro subscribers , click here to download complete report in pdf format.

Subscribe to these reports and read them for 3 months risk free, with a full money back guarantee..

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