Central bank driven liquidity growth, while slowing is still pumping up asset bubbles.
Money and The Fed
Reports on the Fed and Treasury, primary dealers, foreign central banks, money market and mutual fund flows, and other factors that affect market liquidity
Money and The Fed
The Big Test
by Lee Adler •
The market faces its biggest test of tapered QE on July 31. Here’s what you should expect
Money and The Fed
No Sign of Crunch Yet
by Lee Adler •
Even as liquidity growth slows, there’s still no sign of the crunch that’s coming.
Money and The Fed
Liquidity Plentiful Until End of Month
by Lee Adler •
Treasury supply has been light through mid month while the Fed injected far more cash than new Treasury supply would absorb.
Money and The Fed
Technical Factors Make Taper Near Zero This Month, But Look Out
by Lee Adler •
While the Fed’s process of reducing its purchases comes to a virtual standstill this month, the markets are threatened with a huge crunch at the end of the month anyway. This report details the whys and wherefores.
Money and The Fed
Liquidity Conditions Favorable Until End of Month, Then Look Out
by Lee Adler •
Treasury supply will be light through mid month as the Fed injects far more cash than new Treasury supply will absorb. Meanwhile withholding tax collections have weakened since mid June through this week. Is that a harbinger of things to come, or just normal cycling?
Money and The Fed
Fed To Pump $51 Billion This Month But Liquidity Will Be Tighter
by Lee Adler •
The Fed has tapered gross purchases from Primary Dealers to $51 billion this month. That’s the amount of cash that it pumps into dealer accounts. But the Fed doesn’t talk about that, and neither does any of the pundits because most don’t understand what’s important. The ones that do don’t want you to know about…
Money and The Fed, Professional Edition
Peak Financial Engineering
by Lee Adler •
Real time tax collection data shows that business boomed in the second quarter. Record corporate and individual tax collections are similar to where they were just as the housing bubble was about to collapse. Have we reached the peak of the QE/ZIRP driven financial engineering bubble? Meanwhile, the first real test of Tapered QE is…
Money and The Fed, Professional Edition
Current QE Level Still Sufficient For Bubble To Continue But Change Is Coming This Fall
by Lee Adler •
The next leg of “The Taper” which the FOMC announced this week will cut purchases from the Primary Dealers, including MBS replacements, to around $50 billion per month, which is still sufficient to cover almost all expected net new Treasury supply until the next Fed meeting. But then things will begin to change. Here’s what…
Money and The Fed, Professional Edition
No Change in Systemic Liquidity, Just A Bigger Handout to the Damn Bankees
by Lee Adler •
The composite liquidity indicator has been marking time in recent weeks, leaving it still slightly below the high set in the week ended May 7. The uptrend remains intact. More new highs should follow, probably as soon as this week, with the Fed holding its regular monthly settlements of its forward MBS purchases. But the…
