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 \u201cconventional\u201d GSE MBS, but often these are \u201cprivate-label\u201d mortgages recently \u201crefinanced\u201d 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).<\/p>
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\u2019s real impact was felt in the $1.777 TN (17.5%) jump in household holdings of Financial Assets. Over \uc5d0\ubcfc\ub8e8\uc158\uac8c\uc774\ubc0d<\/a> , 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.<\/p> Implications of our findings for the abundance of economic bonus programs offered to service customers these days are highlighted. Guests<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3079","post","type-post","status-publish","format-standard","hentry","category-1"],"_links":{"self":[{"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/posts\/3079"}],"collection":[{"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/comments?post=3079"}],"version-history":[{"count":1,"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/posts\/3079\/revisions"}],"predecessor-version":[{"id":3080,"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/posts\/3079\/revisions\/3080"}],"wp:attachment":[{"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/media?parent=3079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/categories?post=3079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fetu000.shop\/wp-json\/wp\/v2\/tags?post=3079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![](\"https:\/\/abt46.com\/wp-content\/uploads\/2022\/08\/Gold-Luxury-Initial-Circle-Logo-12.png\"){kind=logo}