Tweet
Have a look at the Fed's commercial paper volume statistics:
http://www.federalreserve.gov/releas...olumestats.htm
Some wild swings this month. $6.7B per day in AA Nonfinancial 1 to 4 day paper, vs. annual averages of $636M per day in 2008 and $757M in 2007. That's 209 issues per day, vs. less than 50 per day in 2007 and 2008. Whatever's causing it, it seems to have started in about the last week in January. The A2/P2 Nonfinancials and the A2 Financials all seem to be following their usual track.
Didn't the Fed buy a bunch of commercial paper that's coming due around now?
Also, FWIW, it seem to me that the trend in asset-backed commercial paper outstanding is a better indicator of upcoming inflation than the money supply figures are, because it takes into account the massive credit contraction that's happening with non-bank lenders.
http://www.federalreserve.gov/releas...tstandings.htm
http://www.federalreserve.gov/releas...olumestats.htm
Some wild swings this month. $6.7B per day in AA Nonfinancial 1 to 4 day paper, vs. annual averages of $636M per day in 2008 and $757M in 2007. That's 209 issues per day, vs. less than 50 per day in 2007 and 2008. Whatever's causing it, it seems to have started in about the last week in January. The A2/P2 Nonfinancials and the A2 Financials all seem to be following their usual track.
Didn't the Fed buy a bunch of commercial paper that's coming due around now?
Also, FWIW, it seem to me that the trend in asset-backed commercial paper outstanding is a better indicator of upcoming inflation than the money supply figures are, because it takes into account the massive credit contraction that's happening with non-bank lenders.
http://www.federalreserve.gov/releas...tstandings.htm
Comment