As we approach the end of this holiday-shortened trading week, let’s close out Thursday with a look at the latest liquidity numbers from our darling friends in the federal government.
First up, we can see that Yellen has continued to hand out free cash to her banking cronies by way of BTFP, with the amount owed clocking in at $108 billion. Nice to have friends in high places, yes? Ostensibly, her 12-month program is now 50% done. I can guaran-fucking-tee you that, in an effort to “support everyday Americans“, that scumbag Yellen will extend the program and soften up its terms even more. The notion that her sickening buddies in banking are going to be handing that cash back is out of the question. Just. You. Watch.
The checkbook for the old biddy is still well-funded.
Over in Powell-land, the continue to dispose of their (constantly dropping-in-value) bonds onto the market, unwinding the program back to June 2021 levels. By the year 3950 or so, this should all be squared away.
The Reverse Repo continues to plunge in popularity.
And, the admittedly-outdated Fed Spread is a nice, clean 600 points lower than the actual S&P 500.
None of this gives the permabull site Zerohedge any concern, as they oddly assert that, in spite of September being the one and only of the twelve months that is persistently down, it will somehow defy all history and zip higher. ZH, the mouthpiece of Goldman Sachs now, is calling for 4850 by year-end.
