United Liberty
Why Has The FED Acted As If The World Is About To End? Here’s Why:
Fri, 10/31/2008 - 8:54am | posted by Austin Wilkes
Since the middle of the 20th Century, when the Federal Reserve started compiling this measurement of non-borrowed bank deposit reserves there has been little short term deviation from its normal levels. Long Story short - Bank reserves, other than those achieved through loans (usually FED funds market, or discount window) have evaporated.
I can’t read that. Why didn’t you include a hi-rez version?
Link got cut - Post Updated.
I wish the graph showed the great depression for a comparison to this event, just to give a better perspective.
Where did you find this?
Yes I agree fully. I tried looking at the St. Louis FED for earlier historic data to include as a reference (Panic of 1907 & GD specifically) but could find nothing of this series earlier than the dates included in this chart. If any readers have any insight to past data series (maybe a name change or related highly related series) please share.
And the data is from the St. Louis FED.
Just keep printing more money and lowering interest rates, yea, that’s the ticket…
Where the heck did all that money go so quickly?
I found a graph of the era that you were talking about. http://www.signaltrend.com/Stock-Market-Great-Depression.html
It does look somewhat similar to what we are seeing in this day and age.
Jessica. The money didn’t go anywhere. The definition of money is the actual problem. You can’t think of this money expansion as a bunch of dollars in a safe somewhere or printing presses printing new dollars which have now disappeared. The Federal Reserve allows banks to loan money with no backing except for the borrower’s ability to pay. It’s an IOU, ‘all the money’ you ask about never existed, it was debt on paper. The Fed was allowing banks to LOAN from them at a low rate. It was deliberate debt destruction. If many people or everyone in this case were able to get loans with no proof of anything what does that do? It creates an artificial market, and inflates the prices of everything. So a house that was worth 100 thousand was bid up to 1 million because of the widespread ability of more people getting more loans. More people with access to loans / debt, it’s not cash money it’s different. At any rate, the USA is screwed. The Dow is going to 1k by end of 09.
Post new comment