Slosh report: from $1/2 Trillion a day to ZERO!

Slosh Report
I don't know what this means.
But we went from 1/2 trillion a day to ZERO today.
I think the slosh became meaningless when they opened the drive-thru window.

April 30th, 2008: New Record: Slosh Report $282.76 Billion
Sept. 18, 2008: Amazing what $340,000,000,000 will buy
Nov. 14, 2008: Silly me. It's only $2+ Trillion a week now
Dec. 3, 2008: Slosh to top 1/2 trillion a day beginning Thursday

hey Galt....can you explain that stuff in simple terms to me... why does that money end up in the mkt

hey Galt....can you explain that stuff in simple terms to me...

why does that money end up in the mkt

If we really knew, they would have to kill us.
But here's what THEY say:

From the Federal Reserve Bank of New York:
Temporary Open Market Operations:
To implement monetary policy, short-term repurchase and reverse repurchase agreements are used to temporarily affect the size of the Federal Reserve System's portfolio and influence day-to-day trading in the federal funds market.

Securities Lending
The Bank provides a secondary and temporary source of securities to the financing market through a Securities Lending program to promote smooth clearing of Treasury and Agency securities. The program offers securities for loan from the System Open Market Account (SOMA) portfolio in accordance with program terms and conditions. Securities loans are awarded to primary dealers based on competitive bidding in an auction held each business day at noon eastern standard time.

Securities Lending Chart

That report is obsolete since they failed to change it to accomodate the QE program which includes 1.7 trillion dollars for purchase of treasuries, GSE agency debt, and GSE MBS. Treasury has also been borrowing 400 billion dollars more than they need in short-term maturities and using the funds to buy longer-term debt and other securities.

"That report is obsolete since they failed to change it to accomodate the QE program which includes
1.7 trillion dollars for purchase of treasuries, GSE agency debt, and GSE MBS."

That's the drive-thru window I was talking about.
That's why I quit paying attention to it.
But I did find it interesting that it finally went to ZERO yestreday.

Along with the sell-off in bonds, the Federal Reserve has halted its emergency $1.25 trillion program to buy mortgage debt, placing even more upward pressure on rates.
Each increase of 1 percentage point in rates adds as much as 19 percent to the total cost of a home.
LINK

They probably took delivery of more securities this week. Week before opens expiry is their favorite time. You won't know what was added to the Fed's balance sheet during this week until 5pm Thursday.

http://www.ny.frb.or...ccholdings.html