Non-borrowed reserves of Fed banks, EXPLODING! $323B total reserves ready to be lent;
http://www.federalre...ist/h3hist2.txt
Now that the bad assets cleaned up from the banks, or somehow vanished, the banking earnings will continue to explode!
No other company can match the banking earnings until the inflation soars;
(1) IF they screw up, it is ok the tax dollars will buy the bad assets,
(2) They are essentially given free money to sell for a profit...
I want to start up a bank.
Nonborrowed reserves of the banks
Started by
arbman
, May 07 2009 07:51 PM
8 replies to this topic
#2
pdx5
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I want return OF my money more than return ON my money
Posted 07 May 2009 - 07:56 PM
Futures are modestly higher at 6 pm Pacific time.
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule
#3
arbman
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Posted 07 May 2009 - 08:03 PM
We will probably get the confusing sell off, the rest of the economy will probably crumble for a while, but the banks will do fine here. The environment is deflationary, the rates will remain low and they are making so much profit by lending at the moment. This must be a historic low for the banks, I think they will double or triple by the end of the year or by 2010 unless the rates soar and choke the borrowing. I don't know about the rest of the economy.
#4
humble1
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Posted 07 May 2009 - 08:11 PM
exactly!
that's why they won't need any more TARP money.
can M&A's be far behind? that is the quickest way to get those tasty $$ earning interest and into equities. what's 10 X's that $ 323 billion?
#5
arbman
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#6
cappy
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Posted 07 May 2009 - 09:13 PM
what a Hoot! To the moon! Its all true. I know it is. 50% ameritrade traders long financials. Getty up!
#7
thespookyone
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Posted 07 May 2009 - 09:14 PM
Ah Arb, the much overlooked problem on those proposed future mortgage profits-to get a mortgage, you need proof of a JOB-now in quite short supply.
#8
Data
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Posted 07 May 2009 - 10:10 PM
those reserves are on deposit at FRB branches earning interest.
#9
Gary Smith
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Posted 07 May 2009 - 10:33 PM
>>>>This story will have a bullish ending this year...<<<<
I believe the bullish story has been playing out in front of everyone's eyes the past two months. Junk bonds are in the midst of their greatest rally ever and April was the best month on record. Most of the open end junk bond funds have had but two or three down days since March 10! The previous best year for the open end junk funds was 1991 at around 37%. Some are already up 20% YTD and set to smash that annual record.
