Liquidity 02 incl QE, Twist, LTRO, APP etc (Jun 14 - Dec 25)

[behappyalways]

Financial conditions are looser now than they were before the Fed started hiking. It's almost as if the Fed did nothing at all.
https://twitter.com/Mayhem4Markets/stat ... 7745466870

[behappyalways]

In The Next Several Weeks, We Could See $300 Billion Of Liquidity Leaving The System
https://www.zerohedge.com/markets/next- ... ing-system

[behappyalways]

Reverse Repo plummets to $327.1BN from $407.3BN.
https://twitter.com/zerohedge/status/17 ... 6311367084

[behappyalways]

One day after the huge Treasury cash increase (thanks to taxes), reverse repo surged by $69BN to $440.5BN, up from $327BN on Monday.
https://twitter.com/zerohedge/status/17 ... 7710887333

[behappyalways]

Financial conditions in the US are tightening as rates rise, equities fall and we see liquidity diminishing.
https://twitter.com/Mayhem4Markets/stat ... 1207132642

[winston]

Quantitative Tightening

The Fed has been engaged in QT since June 2022, allowing $60 billion in Treasuries and $35 billion in mortgage-backed securities to mature monthly, without reinvesting the proceeds—pulling cash out of the financial system…

The Fed’s balance sheet has declined from nearly $9 trillion at its 2022 peak…to about $7.4 trillion last week.

Today, Powell announced that the Fed will slow the reduction of its balance sheet. Specifically, the monthly cap on Treasurys will fall to $25 billion from $60 billion, while the mortgage roll-off will remain unchanged at $25 billion a month.

Source: Investor Place

[behappyalways]

Need to keep hiking rates. There's obviously still far too much money in the system if someone will spend $43.8M on whatever the hell this is supposed to be.
https://twitter.com/Mayhem4Markets/stat ... 5373631512


Dear Jerome Powell,

Please hike rates to 10% tomorrow.
https://twitter.com/Mayhem4Markets/stat ... 5391458577

[winston]

U.S. Money Supply Is Doing Something So Rare That It Hasn't Happened Since the Great Depression -- and a Big Move in Stocks May Follow

by Sean Williams

M1 takes into account all the cash and coins in circulation, as well as demand deposits in a checking account.

M2 utilizes everything in M1 and adds in money market accounts, savings accounts, and certificates of deposit (CDs) below $100,000.

The M2 money supply peaked in April 2022 at $21.722 trillion. As of March 2024, M2 came in at $20.841 trillion. While this might look like a fairly tame decline of $881 billion (4.06%) spanning roughly two years, it represents the first decline of at least 2% in M2 money supply since the Great Depression.

Source: The Motley Fool

https://finance.yahoo.com/news/u-money- ... 00820.html

[winston]

Since 2020, the U.S. has printed nearly 80% of all the U.S. dollars in circulation

To put that in perspective, at the start of 2020 we had ~$4 trillion in circulation.

Now, there is nearly $19 TRILLION in circulation, a 375% jump in 3 years.

We are paying the price for trillions of Dollars that were printed seemingly overnight.

In the year since The Kobeissi Letter published this, our M2 Money Supply has risen ever higher – from nearly $19 trillion to more than $21 trillion.

Source: The Kobeissi Letter

[behappyalways]

Yellen Pivot Is Fading: Liquidity Drains From The System As Treasury Issues Fewer Bills
https://www.zerohedge.com/markets/yelle ... ewer-bills