August 04, 2008

Hmmm... something looks a bit odd with this chart from The Fed, wouldn't you say?

Total Borrowings of Depository Institutions from the Federal Reserve


Is that blue line thingy supposed to do THAT?



(thanks Matt)

28 comments:

sundry vermin said...

Come on Keith, you know.

The problem we're coming off of is a too much debt hangover. Clearly the fix is more debt.

Like the chronic drinker says of his hangover in the morning "Ya gotta bite the dog that bit you" translation - pop a couple beers or mix a few drinks to alleviate the suffering.

Surely you're "down" with this logic.

ATE-UP said...

That Lil" Blue Thingy is telling us this country is in cardiac arrest. Cute litle monster, isn't it? Heading straight for the Moon!

Mark in Philly said...

It means one heck of a recession is coming (looking at the shaded portions of the chart compared to borrowing in the past).

And most likely much higher interest rates...

Nick said...

Well if you look at the chart then one can infer that the banks are in big trouble. However, our banking and financial system is the greatest in the world.

In other countries they will probably suffer from a banking crisis. But our nation is too big to fail and we are way too sophisticated.

Scared_%^&less said...

Damn, look at the chart % change

http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&s[1][id]=BORROW&s[1][transformation]=pc1

That is 200,000 percent increase in borrowing from the fed? Isn't this hyperinflation type numbers?

George, you're a genius said...

Welcome to George Bush's New Depression.

Welcome to Hell.

The Housing bubble Ate my Balls. said...

I call "The Bernake Bubble."

Chris Talmeth said...

Is it true that most mortgages are funded by the Federal Reserve? The government is basically the only entity loaning money to people buying homes? That would make government the largest real estate company in the world. Is the government supposed to be a real estate funding and investment company?

Am I on planet Earth? What universe am I in?

Anonymous said...

I would call it "Green Spanning".
Bridging the gap between the money you have and the money you need by cranking up the printing press, lying, or just conjuring the assets you need by pretending they exist.

"What do you mean, this CDO is worthless? It says 'one trillion dollars face value' right here! Now lend me some cash, you bastard."

-Snowden

Anonymous said...

The weekly chart is slightly less scary, since at least the spike isn't still on the way up...

http://research.stlouisfed.org/fred2/series/TOTBORR

Joe said...

This chart for non-borrowed reserves shows why.

http://research.stlouisfed.org/fred2/series/BOGNONBR

This tells me all these banks don't even hold reserves anymore. They are borrowing money from the FED just to keep the damn doors open.

Forget banks runs because they ain't got no money there no more.

Joe M.

Anonymous said...

Nick said...

.....Well if you look at the chart then one can infer that the banks are in big trouble. However, our banking and financial system is the greatest in the world.

Perhaps you should study the chart again. Not a tough one, as the line goes straight up. Our banks are insolvent and borrowing money from the Fed daily. "Inference"? The chart is from the Fed. What is there to infer?

What do you base your statement on that our banking and financial system is the greatest in the world? Who says it is the greatest? You? Our banking system is broken. It has become a "subprime" banking system, ass deep in debt and no way out other than borrowing from the taxpayers.

That would be you and me.

.....In other countries they will probably suffer from a banking crisis. But our nation is too big to fail and we are way too sophisticated.

What other countries? The ones that are holding our default swaps, and all of the other bogus play money, along with our devalued T Bills and dollars? Yea they probably will go belly up. They trusted us. Sure sucks to be them. They have been rooked by the greatest financial system in the world.

You think our banking system is sophisticated? I think our entire financial sector has become one gigantic Amway/Ponzi pyramid scheme.

You are looking at the Fed's own chart and you are in some sort of denial. Turn off the shining beacon of freedom on the hill BS and look at the chart again. The chart is showing you what type of future you can expect to have when the Fed has no more money to loan and begins to print money to keep the banks propped up. (Actually, this house of cards is going to collapse way before that happens IMO).

....However, our banking and financial system is the greatest in the world.

The bigger they are, the harder they fall.

JaneZ

bank dick said...

"What problem? I don't see a problem Hank, do you?"

"No Ben, everything is OK down here at the Fed, but those goddamn bloggers keep stirring up trouble."

"Yeah Hank, it's seditious behavior at best.

"Sedition hell, home-grown financial terrorism is what I'd call it, and we're not going to sit here and take it. The election is coming and I think it's time to spray the golden nectar of truth on these anti-American websites."

"OK Hank, the Fed is ready, when do you want to let the dogs loose?"

Anonymous said...

WTF does the acronym (BORROW) on the chart stand for?

Maybe this:

Bankers
Overtly
Robbing
Republic
Of
Wealth

read the fine print said...

I see how you left out the notes underneath the graph...

"Please note breaks in data: Data prior to 2003-01-01 include adjustment, extended, and seasonal credit. Data from 2003-01-01 to 2007-11-01 include primary, secondary, and seasonal credit. Data from 2007-12-01 to 2008-02-01 include primary, secondary, seasonal, and term auction credit. Data from 2008-03-01 forward include primary, secondary, seasonal credit, primary dealer credit facility, other credit extensions, and term auction credit."

They started using different criteria after March 2008. It's like comparing apples and oranges. But keep thinking that the sky is falling.

Anonymous said...

SHUT UP!!!

Jim Cramer said it's time to buy a house (or two) in the financialtainment section of the Regis show.

That's the final word on the matter, discussion over. Now go out and buy a house (or two).

bank dick said...

"Hank, what a surprise, you're calling me on the secure line."

"Mr. Vice President, I just talked to Bernanke and we both think it's time to initiate some of the actions discussed in our last meeting at Camp David."

"What did you have in mind Hank, you know the election is coming-"

"Dick, we need to activate NSC protocols and I'm referring specifically to NSDDN 500. The justifications are clear under the Patriot Act, and our intent is to eliminate the spread of false and misleading economic information from bloggers and websites."

"Jesus H Christ Hank, is it that bad? I thought you and Fahad had a deal""

"Ken Lewis and our buddy Rubin both tell me they are going to have really bad news and they can't shelve it much longer. King Fahad is with us, but recent developments show we need a lot more capital than he and his partners can provide. We have two, maybe three weeks to put a lid on the money center bank issues, and if we have the usual leaks from Commerce or Executive it could get ugly since these damn web sites get the stuff out so fast. I'm talking major runs and we'd need Congress to come back in emergency session to fund the bailouts."

Dammit Hank, you know we can't use that kind of language! That asshole Rubin has lied to me for the last time! OK sorry, Jesus my pacemaker is kicking in --OK Hank, I'll call an emergency NSC meeting for this afternoon. Tell Ben I'm on board and I'm pretty sure W is too."

"Thank you sir"

Anonymous said...

Is that blue line thingy supposed to do THAT?

You made me spudge coffee out of my nose, ouch!

GT Charlie

edd said...

It's a good thing it
can't go past 200,000,000,000.

But I don't see anything
below the zero line.

Anonymous said...

The line between the treasury, private banks, and the Federal Reserve is no longer there.

It's good to be rich in America.

Lady Di said...

Put a fork in it already.

We're done.

Time to buy more gold.

Thanks Ben. Thanks Alan. Thanks banker buddies.

Idiots.

look again said...

read the fine print,

They didn't change the criteria they report to include items that were not included before. They added new ways for banks to borrow money from the Fed and included those (that didn't exist before).

Hence the graph shows exactly what it looks likes, banks have increased their borrowings from the Fed astronomically.

The term auction facililty was created on 12/21/2007, so surprise surprise isn't part of earlier data.

The Primary Dealer Credit Facility was started on 3/17/2008, so surprise surprise isn't part of earlier data.

Who knows what "other credit extensions" means, but they it'll also be something new.

So it isn't comparing apples to oranges, you're just too stupid to notice that the Fed has been creating news ways to pump money into the system in the last year...

But continue reading the fine print that you don't understand.

Happy Homedebtor said...

Rawful - so it's hyperinflation now! Which means I'll be able to skip buying a soda and payoff my mortgage instead - score!

Sux to be a renter eh? "Yes sir...we're adjust your rent up by 5,000%" "WTF?!?!" "Well inflation is running at 10,000% so we figured we'd cut you a deal"

My mortgage: same thing. :)

Anonymous said...

Oh yeah, that's what I call a bull market (08/04/08):

DOW: -15% YTD
NAS: -1.10%; -14% YTD
S&P: -1%; -15% YTD

Attention, attention! Calling all financial retards to jump in the rigged and rotten market, just to get fleeced a few days later. How's that buying dips strategy doing for you, geniuses? The dips with no bottom in sight. Bwahahahaha

DOPES!

DOLTS!

Nick said...

Anonymous Anonymous said...

Nick said...

.....Well if you look at the chart then one can infer that the banks are in big trouble. However, our banking and financial system is the greatest in the world.

Perhaps you should study the chart again. Not a tough one, as the line goes straight up. Our banks are insolvent and borrowing money from the Fed daily. "Inference"? The chart is from the Fed. What is there to infer?

What do you base your statement on that our banking and financial system is the greatest in the world? Who says it is the greatest? You? Our banking system is broken. It has become a "subprime" banking system, ass deep in debt and no way out other than borrowing from the taxpayers.

That would be you and me.

.....In other countries they will probably suffer from a banking crisis. But our nation is too big to fail and we are way too sophisticated.

What other countries? The ones that are holding our default swaps, and all of the other bogus play money, along with our devalued T Bills and dollars? Yea they probably will go belly up. They trusted us. Sure sucks to be them. They have been rooked by the greatest financial system in the world.

You think our banking system is sophisticated? I think our entire financial sector has become one gigantic Amway/Ponzi pyramid scheme.

You are looking at the Fed's own chart and you are in some sort of denial. Turn off the shining beacon of freedom on the hill BS and look at the chart again. The chart is showing you what type of future you can expect to have when the Fed has no more money to loan and begins to print money to keep the banks propped up. (Actually, this house of cards is going to collapse way before that happens IMO).

....However, our banking and financial system is the greatest in the world.

The bigger they are, the harder they fall.

JaneZ

August 04, 2008 4:00 PM

Jane Americans have a total net worth of 50 trillion dollars. According to the Federal Reserve that is. Sounds like chump change?

For God's sake, if you don't feel that we are the greatest nation and people on the face of this earth, then go ahead and move to Zimbabwe, Timbuktu, or any other country. America won't miss you.

As far as foreigners who bought our debt and mortgage backed security, all I have to say to them is: TOO BAD. Our economy will continue it's upward expansion (in the long term the stock market, real estate, commmodities, and our economy ALWAYS GO UP).

Anonymous said...

Anonymous Nick said...

Well if you look at the chart then one can infer that the banks are in big trouble. However, our banking and financial system is the greatest in the world.

In other countries they will probably suffer from a banking crisis. But our nation is too big to fail and we are way too sophisticated.

August 04, 2008 2:37 PM
----------

Nick, what do you call the recent bank failures? Seems like a crisis is forming don't you think?

jim said...

I think hes being sarcastic.

Anonymous said...

Nick said...

For God's sake, if you don't feel that we are the greatest nation and people on the face of this earth, then go ahead and move to Zimbabwe, Timbuktu, or any other country. America won't miss you.

As far as foreigners who bought our debt and mortgage backed security, all I have to say to them is: TOO BAD. Our economy will continue it's upward expansion (in the long term the stock market, real estate, commmodities, and our economy ALWAYS GO UP).

Perhaps you should send your resume to the PPT Team. Better yet, you would be perfect for Team America.

Actually we will be leaving as soon as we retire in a few years, but we want to leave America in the hands of the greatest nation and people on the face of this earth, which I guess would be you, since apparently you speak for all of America and God too.

So how has your 401k fared during this "Great Upward Expansion"???

JaneZ