Thursday, September 25, 2008

The Fed's Balance Sheet II

I noted a few days ago that the bank's deposits at the Federal Reserve had exploded. In the latest report (Sept 25, 2008) these deposits have more than doubled from the high levels of last week, to $104,506 billion. When that number gets back down to levels that it was at prior to September, we will know that the financial panic is over.

Certainly the Fed has been aggressive in trying to meet the demands for liquidity. There were also some notes on the report announcing several new ways that the Fed is trying to deal with the crisis.

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