Fed’s assets spike to high heaven to bail out the imploded Everything Bubble it had worked so hard to inflate over the past decade.
By Wolf Richter for WOLF STREET:
Total assets on the Fed’s weekly balance sheet, released this afternoon, spiked by $586 billion in one week, to $5.25 trillion. This doesn’t even include yet the bulk of the mortgage-backed securities (MBS) the Fed bought over the past two weeks because the Fed books them when its trades settle, and MBS trades take a while to settle. So they will show up later.
Over the past two weeks, total assets have ballooned by $942 billion – again not including the bulk of the MBS it bought during that time, which will be booked when they settle. Money creation at its finest:
If the Fed had sent that $942 billion it created over the past two weeks to the 130 million households in the US, each household would have received $7,250. But that didn’t happen. That was helicopter money for Wall Street.
Since mid-September when the Fed started bailing out the repo market that had blown out, total assets on the Fed’s balance sheet soared by $1.41 trillion. If the Fed had sent that $1.41 trillion to the 130 million households in the US, each household would have received $10,840. But that didn’t happen either. It was helicopter money for Wall Street…
Rigged Game 