Posts Tagged ‘money suppy’

US Commercial Banks: the Turkeys Are Stuffed

US Commercial Banks: the Turkeys Are Stuffed

Courtesy of Jesse’s Café Américain

The increase in the monetary base created by the Fed’s monetization of debt is striking, not seen since the early stages of the Great Depression.

[click on charts for larger views]

Banks are not lending despite the massive quantitative easing. They are fat with reserves, paying huge bonuses again, and obviously doing something with their money other than providing funds for the commercial activity of the nation.

Excess Reserves are an accounting function. The banks themselves do not reduce their reserves significantly through lending in the aggregate, but seek to minimize the opportunity cost of reserves. But it is symptomatic in the sense that the lack of reserves is most definitely NOT an issue with lending.

No one can deny with any credibility that if the Federal Reserve reduced their payment on reserves to zero, or even a negative, that lending activity would not increase. And yet they do not. Why?

Because the first priority of the Fed is the health of the banking system itself, and not the national economy and the availability of credit to non-banking institutions. They are seeking to drive commercial entities out of secure savings to risk investment again, but providing a safe harbor for the banks while they are doing it, while attempting to maintain the appearance of financial system solvency.

The critical, unspoken factor is that the US banking system is not yet healthy, is not sound, is not well capitalized despite the record expansion in the monetary base and its specific direction to the banks themselves. They have simply not taken the writedown necessary to make themselves financially sound, because they do not wish to take the hit to earnings, salaries, stock options and bonuses.

Ben Bernanke’s gambit is as much financial fraud as it is a monetarist exerperiment in cynicism with regard to the management of a nation’s money.

 


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ValueWalk

S&P 500 (INDEXSP: .INX) in the red for a third straight day

By Jacob Wolinsky. Originally published at ValueWalk.

September 18, 2020 Update: The S&P 500 (INDEXSP: .INX) declined for a third consecutive day amid fears about the economic recovery in the U.S. and a new global surge in coronavirus infections. Today is also a “quadruple witching” day, which doesn’t help matters any. There is one such day every quarter when volatility is increased due to the expiration of futures and options on indexes and equities.

The S&P has been trading lower since Wednesday when the Federal Reserve signaled it would hold interest rates near zero for years as the economy continues to reel from the pandemic. Stocks were also pressured as the prospects of further stimulus from Congress grow even dimmer.

S&P 500 (INDEXSP: .INX) continues to hover close to record

August 17, 2020 Update: The S&P 500...



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Phil's Favorites

More Than One Third Of All NYC Residents Consider Leaving

Courtesy of Mike Shedlock via MishTalk

The cost of living in New York City is so steep that in the past 4 months, 35% have considered leaving.

High Income Flight

A Siena College study shows 44 Percent of Six-Figure Earners in NYC Have Considered Relocating.

The study also states 80% of those living in the city make $100,000 or more, and that translates to 35.2% of all residents.

Key Findings ...

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Zero Hedge

More Than One Third Of All NYC Residents Consider Leaving

Courtesy of Mike Shedlock via MishTalk

The cost of living in New York City is so steep that in the past 4 months, 35% have considered leaving.

High Income Flight

A Siena College study shows 44 Percent of Six-Figure Earners in NYC Have Considered Relocating.

The study also states 80% of those living in the city make $100,000 or more, and that translates to 35.2% of all residents.

Key Findings ...

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Politics

Faked videos shore up false beliefs about Biden's mental health

 

Faked videos shore up false beliefs about Biden's mental health

Joe Biden faces a disinformation campaign promulgating the false notion that he is in cognitive decline. Gage Skidmore/Flickr, CC BY-SA

By Dustin Carnahan, Michigan State University

From Ronald Reagan in 1984 to Bob Dole in 1996 and even ...



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Kimble Charting Solutions

Gold Breakout Triggers Buy Signal, Is $3000 Next Target?

Courtesy of Chris Kimble

90-days ago this cup & handle pattern was discussed on See It Market when Gold was trading at 1717.

Fast-forward to today and Gold is up 15 percent. So it’s time for an update!

As we pointed out 90-days ago, the initial price magnet for the rally was the 261.8 Fibonacci extension that marked the 2011 high at (1).

That high has served as price resistance for nearly 9 years! …But it may be ...



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Biotech/COVID-19

Smoke from wildfires can worsen COVID-19 risk, putting firefighters in even more danger

 

Smoke from wildfires can worsen COVID-19 risk, putting firefighters in even more danger

Firefighters have battled camp crud before, but COVID-19 brings new risks with the potential for heart and lung damage. Robyn Beck/AFP/Getty Images

By Luke Montrose, Boise State University

Two forces of nature are colliding in the western United States, and wildland firefighters are caught in the middle.

Emerging research suggests that ...



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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

Golds bullish trend has worked well in 2020, so what is next over the immediate 3 to 6 months? Will we continue to see a golden future.

The US dollar had been strong into COVID 19, since then the FED has printing a lot of money, and they are also considering YCC (Yield Curve Control), last seen during WW2. [Note YCC lasted 9 years over WW2. WOW, that is a lot of money printing.]

The FED is now forecast to over take competing central banks balance sheets in size, and the release valve will be a falling US dollar. Therefore we should continue to see the US dollar maintain is slow leak down over the next 3 to 6 month, say on the DXY 82 to 88. 

Also, US election worries will add to the weakening of the dollar. Of course extreme chaos in W...

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Digital Currencies

Cryptocurrencies Rarely Used To Launder Money, Fiat Preferred

Courtesy of ZeroHedge View original post here.

Authored by Shaurya Malwa via Decrypt.io,

Traditional channels continue to dominate the estimated $2 trillion global money laundering racket instead of cryptocurrencies, a report says.

In brief
  • Money laundering via cryptocurrencies is not a preferred tool for criminals, a report said...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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