Macro Liquidity Pro Trader

Analysis of the major forces of macro liquidity that drive markets. Click here to subscribe. Subscribers, click the post headline to access reports.

Accounting For The Fed’s Liabilities As Fed Funds Market Disappears

Fed Liabilities Week Ended September 16

Where else can we review the weekly balance sheet changes of a major corporation, bank, or other financial institution weekly? The Fed provides the means for us to look at its balance sheet every week and actually follow the flows of funds as they move from the Fed to the Federal Government to the banks and vice versa.

Fed Policy Resusbstantiation Rally May Be Preempted

Fed and US Treasury injections of extra cash into the market via Fed MBS purchase settlements and temporary Treasury debt paydowns often tend to coincide with FOMC meetings.  We have seen this phenomenon so much that it would appear to be deliberate. Most of the time it results in a 2-3 day rally immediately on the heels of the FOMC announcement.

US Bank Deposits Have Soared While Europe’s Sank Since ECB Started QE

The Fed’s balance sheet was little changed last week as there were no MBS paydowns, nor purchase settlements. There were no term deposits offered and RRPs outstanding were little changed. Meanwhile, there’s no sign of deleveraging in the US banking system as loan growth continually exceeds 7%. Money supply grows apace. But in Europe, QE…

What You Must Know About Fed Minutes And Emanations From Jackson’s Hole

Composite Liquidity Indicator

This post is an excerpt from the Pro Trader and Monthly Investor MacroLiquidity report. Subscriber links are below the text. The FOMC meeting minutes are a key instrument of official Fed propaganda. They show how the Fed wants you to view policy. There’s some useful information there, but it’s not what the Fed says it…

If You Doubted The Central Bankers’ Brave New World, You Were Right

Ben Bernanke and his cohort central bankers built a Brave New World (SOMA, SOMA, SOMA!) where central bank money printing would boost stock prices and the wealth created would trickle down to workers and cause a booming economy. If you doubted that, you are now seeing proof that maybe this world was a little bit…

Watch This Amazing Chart Show Fed Funds Disappear In A Raging Credit Bubble

Interbank Fed Funds and RRP

This is an excerpt from part 2 of the weekly MacroLiquidity Report for Macroliquidity Pro Trader and Macroliquidity Monthly Investor subscribers (subscriber download links).  Bank loans and US money supply continue to soar as banks lend more, and cash created by the BoJ and ECB flows into the US markets and US banks. The credit…

Forces Of Macroliquidity Rose Slightly Last Week

The Composite Liquidity Indicator has been virtually flat in recent weeks, barely edging higher to challenge the high set in January. Stock prices have mimicked the rangebound pattern. Download this report to view summaries and charts of the performance of the indicator and its components, along with tracking the balance sheets of the Fed, ECB,…