Amerikaanse banken zitten zonder geld.

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Bank Reserves Go Negative
Bron : globaleconomicanalysis.blogspot


klik op het plaatje voor een totaalbeeld.

The NFORBES Chart above is courtesy of St. Louis Fed.

Here's an interesting excerpt from the book Investing Public Funds by Girard Miller about borrowed reserves.

"Another useful indicator of the Federal Reserve's relative monetary policies can be found weekly in the Federal Reserve data. A key statistic is the net free reserves or net borrowed reserves line item. This statistic measures the degree to which depository institutions have found it necessary to obtain funds in the Fed Funds market and through the Fed discount window in order to obtain required reserves.

During periods of central bank credit-tightening operations, the depository sector might find it necessary to borrow funds to meet reserve requirements. This practice results in net borrowed reserves, which shows as a negative number. Conversely, if ample funds are available through the banking system to meet reserve requirements, banks can become net lenders of reserves through the Fed Funds markets"

Given that the Fed is not in a credit tightening mode, we must look for a better explanation. Here it is: Banks in aggregate have now burnt through all of their capital and are forced to borrow reserves from the Fed in order to keep lending.


Click on chart for sharper image.

Total Reserves for two weeks ending January 16th are $39.988 billion. Inquiring minds are no doubt wondering where $40 Billion came from. It's a good question. The answer is the Term Auction Facility. You can see that figure in Table 1 of the H3 release (not shown).

Were it not for the Term Auction Facility, banks would have had to raise $40 billion in capital by selling assets or some other means. We will look at "other means" in just a moment.

For now, the Fed is not disclosing who is borrowing under the Term Auction Facility, probably out of fear that people just might find out what banks are capital impaired and by how much.

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Op donderdag 31 januari 2008 08:55 schreef simmu het volgende:
maar lieverd, deze was al in het centrale topic gepost.......

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Op donderdag 31 januari 2008 09:01 schreef simmu het volgende:

[..]

creapy idee dat normaal nieuws (waarvan overigens de data iig correct is hoor!) dan hier terecht komt

tsjek anders die brief waarvan ik de link daar postte......

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Op donderdag 31 januari 2008 09:27 schreef DoctorB het volgende:
lulkoek.
De FED drukt al jaaaaaren dollars bij. Er wordt inmiddels niet eens meer bijgehouden hoeveel er wordt gedrukt...

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Printing Money to Avoid Immediate Banking Collapse
financialsense.com

According to the Federal Reserve Board website, U.S. non-borrowed bank reserves have gone from $37B to $199M (nope, that’s not a typo) in the last month. We have been discussing this with Sitka Pacific Capital’s Mike ‘Mish’ Shedlock for the last two weeks. He concludes: “Banks in aggregate have now burnt through all of their capital and are forced to borrow reserves from the Fed in order to keep lending.” Simply put, the U.S. banking system has no reserves. In addition, the FDIC has recently begun modernizing large-bank insurance rules. We hope this is a wake-up call to everyone as to the extent of the credit crisis. Bank account balances should be used only for transactions. Instead cash should be held in the form of U.S. Treasury Bills at a conservative brokerage or trust. Under the mattress is also perfectly acceptable (your parents or grandparents had to do it!). For investors, we advised last year to sell the banks. Banks will be soon forced to sell assets (yes, even 10 year Treasury Bonds) at deeply discounted prices to pay depositors.