Implications of our findings for the abundance of economic bonus programs offered to service customers these days are highlighted. Guests can enjoy complimentary access to the Great Cedar Hotel and Grand Pequot Tower pools and fitness center, have dinner at the famous VUE 24 restaurant, take part in the best gaming at one of the most popular casinos, or take luxury to another level with private butler service at one of the Tower Villas. Warren, as you might have noticed, has come out in favor of what isn’t a new idea but simply a seemingly newly urgent idea: protect the right to abortion with a federal statute. To start, click the “Add to Slack” button below or just try the /coffeeroulette command in Slack right now. Now I gotta find out who their tailor was! With Household Liabilities essentially flat (down 1.0% annualized) at about $14.10 TN, changes in Household Assets dictate the increase/decrease in Net Worth. REITs increased 13.3% annualized to $260bn (down 13.5% y-o-y). Money Market contracted at a 16.5% rate during Q2 to $3.584 TN, cutting y-o-y growth to 8.0%. Life Insurance assets grew at an 11.9% pace to $4.552 TN (down 6.6% y-o-y).

On the bank Liability side, total Deposits expanded at a 5.2% rate during the quarter to $7.278 TN (up 7.8% y-o-y). It is worth noting that, on the Liability side, Security Repos expanded $224bn SAAR, the first increase in repos since Q1 2008. “Other” Miscellaneous Liabilities increased $309bn SAAR. is my view that, at this point, only massive federal deficits and government intrusions will stabilize system incomes at today’s highly inflated levels. is worth noting that, despite the crisis, Household Net Worth was up about a third in seven years. The media was quick to pick up on the quarter’s $2.0 TN increase in Household Net Worth. To be sure, placing essentially federal government backing upon previously “private-label” mortgages dramatically changes the market’s perception of these securities’ worth (“moneyness”) – especially with fed funds pegged for an extended period at near zero and the Fed in the midst of a $25bn weekly purchase program in order to fulfill it commitment to purchase $1.25 TN of mortgage securities.

It is, however, worth noting that Bank holdings of Government Securities expanded at a 16.2% pace during the quarter to $941bn. Bank Credit contracted at a 1.4% pace during the quarter to $9.523 TN. Business loans contracted at a notable 17.8% pace (to $2.031TN), although this may be somewhat explained by the thawing of the corporate debt securities marketplace (companies issuing debt to repay bank borrowings). So, the Fed is amassing quite a stockpile of “conventional” GSE MBS, but often these are “private-label” mortgages recently “refinanced” into GSE securities. But this was offset by an increase in GSE MBS of $556bn SAAR in Q2 and $304bn SAAR in Q1. Rest of World holdings were down a rather insignificant $134bn SAAR to $14.200 TN. In nominal dollars, Fed holdings of Agency (mostly MBS) securities increased from $20bn at year-end to $559bn by the end of Q2. Posting the strongest growth since Q2 2007, Securities Broker/Dealer assets expanded at a 14.5% pace to $2.00 TN. On an SAAR basis, the Federal Reserve increased Agency- and GSE-Backed Securities $1.088 TN during Q2 (nominal $272bn).

Broker Dealer assets increased $514bn SAAR during the quarter, although most of this is explained by an increase in Treasuries holdings (up $404bn SAAR). During the quarter, outstanding GSE MBS expanded at a 10.4% rate to $5.173 TN. For the quarter, assets were up $1.964 TN, or 12.0%, to $67.208 TN. Yet, reflation’s real impact was felt in the $1.777 TN (17.5%) jump in household holdings of Financial Assets. Over , the value of Real Estate declined $1.759 TN and Financial Assets dropped $6.043 TN. Although in the near-term this mechanism provides a powerful stabilizing force for both the Credit system and real economy. After all, how much can we expect to discern from traditional Credit-related metrics when policymakers are issuing Trillions of Treasuries/agencies Credit and the Fed is monetizing a Trillion or so? There’s no race with dramatic consequences for the winners and losers, and there’s no impressive physical object that signifies that bad guys are winning the race.