Jan. 31st, 2008

solarbird: (molly-content)

(Not a Rose) Bowl
solarbird: (Default)
The bank reserves situation - previously discussed here - continues to deteriourate:

H.3 - AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
Not seasonally adjusted

Datetotalnonborrowedrequired
2008-Jan. 2467431143644350
1639987-139038276
30p47966-242446506

Now how total nonborrowed reserves are still negative, and, in fact, that first-level situation deteriouriated by a bit over US$1B. But that's not all of it; the reserve requirement also went up, by quite a bit - a little over US$8B. Add that in, and you see that banks have had to borrow an additional US$9.3B to meet reserve requirements. I can't really think that's very good.

Also, on Tuesday, I pointed you to an article on the monoline insurers. Today, a major hedge fund manager released an open set of analysis and research, calling for regulators to step in. Here is a copy of the letter. Tonight, after market close, the first of these got downgraded, with more put on earnings watch. More action should be forthcoming. For what this means, see my previous post, linked above, and this article today by Nouriel Roubini at RGE Monitor.

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