Briefly, economics
Jan. 31st, 2008 08:47 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
solarbirdThe bank reserves situation - previously discussed here - continues to deteriourate:
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.
H.3 - AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND THE MONETARY BASE
Not seasonally adjusted
Date total nonborrowed required 2008-Jan. 2 46743 11436 44350 16 39987 -1390 38276 30p 47966 -2424 46506
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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no subject
Date: 2008-02-02 01:28 am (UTC)no subject
Date: 2008-02-02 05:55 pm (UTC)In a combination bear-market and hyperinflation, which I do not think describes our current situation, the best place to be is low-interest-rate fixed debt used to purchase native-value items such as real estate, but right now, even that is a bad idea.