article thumbnail

Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

article thumbnail

Mish's Global Economic Trend Analysis: Reader Question: Does the.

MishTalk

Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it. The balance sheet was up $720 billion from Aug 1, 2012 to Aug 1, 2013 ($309B in treasuries and $393B in MBS) but that is only $60B per month. Feds Balance Sheet. QE History.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Greek default in all but name - Tom Spencer consulting blog

Tom Spencer

by Tom Spencer on November 27, 2011 · 0 comments  ·  Image Source. IN OCTOBER 2011, private banks accepted a 50% writedown on Greek debt. Definitions. Helpful Links. Greek default in all but name. in Economics. Whatever you say it is, it isn’t ~ Alfred Korzybski.

article thumbnail

Would a Bund by any other name smell as sweet?

Tom Spencer

by Tom Spencer on November 26, 2011 · 0 comments  ·  Image Source. Thirdly, European banks are currently focused on building their balance sheets not on lending. Dexia has around $700 billion on its balance sheet, but like many banks it requires access to short term funding. Definitions.

article thumbnail

Draghi Announces ECB Exit From Easing Remains Far Off

MishTalk

Bernanke says the US economy is solid enough that the Fed can begin tapering its balance sheet purchases later this year. Given the stock and bond market bubbles the Fed has created, the Fed of course should taper (not that it should ever have expanded its balance sheet in the first place). 2011-12-20: Capital Account.

article thumbnail

Reflections on "Paper Reserves" of Central Banks; Gold and the Tapering Disconnect

MishTalk

In Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. On August 1, 2011, holdings amounted to $10.063 Trillion dollars. I posted an interesting chart by reader Tim Wallace of the stock market vs. Fed asset holding (repeated below for convenience).

article thumbnail

Mish Fined 8,000 Euros for Quoting French Blog

MishTalk

On August 15, 2011, I posted BNP Paribas leveraged 27:1; Société Générale Leveraged 50:1; Sorry State of Affairs of U.S. On September 2, 2011, the Wall Street Journal chimed in with A French Banking Primer. trillion balance sheet is leveraged nearly 49-to-1. Needless to say, I did not go. French Banking Primer.