The fantasy Fed liquidity surge continues to not happen. While the media and the pundits continue to bray about the gazillions the Fed has pumped into the market over the past month, once again today, they stood pat, doing the exactly the same amount of weekend repos as were expiring. The net add on the week looked healthy at $8 billion but between the lines, lo and behold, discount window loans dropped by $6 billion, so the effective change in the SOMA was a not so notable $2 billion. As for the last month, as of September 19, SOMA stood just a hair under $814 billion. As of August 15, it was just a hair under $814 billion. So much for the big surge. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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