Liquidity Trader – Macro Liquidity- Fed and Banking

Analysis of the major forces of macro liquidity that drive markets, including the Fed, foreign central banks, and the US and European banking systems. Resulting market strategy recommendations. Click here to subscribe. Now published at Lee Adler’s Liquidity Trader.

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Macro Liquidity Indicator Charts Show Rally Not Long For This World

Macro liquidity growth has slowed to a crawl. The Fed and its cohort major central banks are a negative factor on balance. But runaway financial market speculation is driving a big surge in bank lending to finance securities purchases, and that’s providing self-sustaining liquidity. But debt driven trends eventually break badly. This report looks at…

These Charts Show You Whether Fed’s Reversal Has Pre-Empted a Crash

The Fed announced at its January meeting that “they panicking” (apologies to Trading Places) and that neither rate increases nor the shrinkage of the balance sheet are on autopilot any longer. The Fed says it will adjust both as the economy and “financial conditions,” aka the stock market, dictate. Follow the money. Find the profits!Liquidity…

The Fed Sings A Sweet Tune – Here’s Why It Will Lead To Market Bitterness

Prior to the onset of QE in 2009, a normal reserve position meant tight reserves. There were virtually no excess reserves on the Fed’s balance sheet. That means that the drains will continue until the balance sheet reaches a tight reserve position. Except that that can’t happen because the markets and the economy would have…

As Fed Balance Sheet and Interest Rates “Normalize,” So Too Must Inflated Asset Bubble Prices

Macroliquidity has stopped growing and is on the verge of contraction. Meanwhile, world central bank liquidity has been in a declining trend since the second quarter of 2018. Bear markets commenced around the world then. The US lagged, but is quickly catching up. With the trends in place, not only will the Fed normalize its…

How the Fed’s Money Movements Get Flushed But Float To The Surface

The Fed has flushed $373 billion in assets since mid October 2017. But money comes floating back to the surface in other ways. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the…