After taking 3 of 4 days off between March 10 and March 15 the Fed resumed daily pumping last week, and is scheduled to continue pumping about $25 billion a week into the market through April 11. Along with that the market will be getting the benefit of $25 billion a week in Supplementary Financing Program Cash Management Bill paydowns through March 24. Another plus appears to be a seasonal upsurge in bank purchases of Treasuries. All of this comes when Treasury supply will be light. No new supply will settle until the end of the month.

But there are problems inherent in the timing of all this. And data on the condition of banks suggests that the too big to fails are losing money again. The Fed’s decision to allow the resumption of dividends is a scam on the public.

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