Record $1,391,580,000,000.00 last week!

Yep. That's right. 1.39 TRILLION in one week! (Or is that Zillion? I get confused.)
Add the TIO and TAF beginning April 28 thru May 2nd and I come up with $1,391,580,000,000.00
Last week the Almighty Fed "loaned" out $1,391,580,000,000.00
This brings the weekly average up to $1,200,000,000,000.00
EACH WEEK!


Slosh Report

Remember the good old days like 9/11/01 when they only handed out $95 Billion in a panic?





You would think that $1,391,580,000,000 would have given us some kind of rally last week.

Edited by Rogerdodger, 02 May 2008 - 11:31 PM.

Hmmm.... Probably other central banks are also absorbing the paper from the Fed because SOMA has actually declined, it explains the USD rally somewhat. They are definitely rolling forward the existing loans while adding gradually the new temporary loans. They added about $80-90B last month, something like $200B YTD. It is still a lot of TOMOs and inflationary by 2003-2006 standards though...

Temporary (less than a year usually) vs permanent (over 1 yr to a decade) is just the wording, only the term of the repos are different and nothing is forever permanent. TSLF was supposed to be 90 days or temporary, I think it will keep rolling for about 2-3 years.

No matter how you slice and dice it, the long term Treasuries will eventually collapse. We are looking for 15-20% rates by 2010-2011, if they keep this kind of monetary policy, assuming the economy will not collapse instead (deflation)...

Shucks, this makes paying the newly qualified Social Security payments the next few years look like child's play.

If you feel overwhelmed and powerless, remember this:

You can unplug your toaster.
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If you feel overwhelmed and powerless, remember this:

You can unplug your toaster.
This reminder brought to you by GE.
"We bring good things to life."

No its " We bring bad things to life." Trust me on that one. I worked for the monster.