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In the following article they talk about banks burning through their reserves (due to write-downs I suppose): http://www.safehaven.com/article-9360.htm
The salient para is:
According to the Federal Reserve Board website, U.S. non-borrowed bank reserves have gone from $37B to $199M (nope, that's not a typo) in the last month. We have been discussing this with Sitka Pacific Capital's Mike 'Mish' Shedlock for the last two weeks. He concludes: "Banks in aggregate have now burnt through all of their capital and are forced to borrow reserves from the Fed in order to keep lending." Simply put, the U.S. banking system has no reserves.
Well if that's bad news, check out the update to this line attached (2nd column): from 37b to $198b to... minus 8 billion.....
Source: http://www.federalreserve.gov/releases/h3/Current/
It's only preliminary...
Is there anyone who could (cough) interpret this for me.
The salient para is:
According to the Federal Reserve Board website, U.S. non-borrowed bank reserves have gone from $37B to $199M (nope, that's not a typo) in the last month. We have been discussing this with Sitka Pacific Capital's Mike 'Mish' Shedlock for the last two weeks. He concludes: "Banks in aggregate have now burnt through all of their capital and are forced to borrow reserves from the Fed in order to keep lending." Simply put, the U.S. banking system has no reserves.
Well if that's bad news, check out the update to this line attached (2nd column): from 37b to $198b to... minus 8 billion.....
Source: http://www.federalreserve.gov/releases/h3/Current/
It's only preliminary...
Is there anyone who could (cough) interpret this for me.