Tuesday , May 18 2021
Home / David Stockman /Be Very Afraid: $1.4 Trillion Of Excess Bank Reserves And 10% Repo Don’t Compute

Be Very Afraid: $1.4 Trillion Of Excess Bank Reserves And 10% Repo Don’t Compute

Summary:
Yet while the book has yet to be written on the causes for last week's shocking move higher in repo rates, which sent general collateral as high as 10%, a record print in a time of .4 trillion in excess reserves, we can shed some clarity on the definition of "reserves." While there is a universe of semantic gymnastics when it comes to explaining what reserves are, the  most basic definition is quite simply "cash", however not cash in circulation but rather cash (and deposits) held in the bank's account with the Federal Reserve (which the US central bank's name comes from). https://www.zerohedge.com/markets/these-are-banks-where-feds-14-trillion-reserves-are-parked

Topics:
David Stockman considers the following as important:

This could be interesting, too:

David Stockman writes Ooops! Even China’s Debt-Fueled Post Covid Boom Hit The Brakes In April

David Stockman writes MOOAAR War! Liz Cheney Says 3 Billion Of Pentagon Waste Ain’t Enough

David Stockman writes Crypto Crazies—Putting the Dotcom Bubble To Shame

David Stockman writes Zuck’s Crypto—Straight From The Deep State Vaults

Yet while the book has yet to be written on the causes for last week's shocking move higher in repo rates, which sent general collateral as high as 10%, a record print in a time of $1.4 trillion in excess reserves, we can shed some clarity on the definition of "reserves." While there is a universe of semantic gymnastics when it comes to explaining what reserves are, the  most basic definition is quite simply "cash", however not cash in circulation but rather cash (and deposits) held in the bank's account with the Federal Reserve (which the US central bank's name comes from).

https://www.zerohedge.com/markets/these-are-banks-where-feds-14-trillion-reserves-are-parked

David Stockman
David Alan Stockman (born November 10, 1946) is a former businessman and U.S. politician who served as a Republican U.S. Representative from the state of Michigan (1977–1981) and as the Director of the Office of Management and Budget (1981–1985) under President Ronald Reagan.

Leave a Reply

Your email address will not be published. Required fields are marked *