#FDIC

The Big Picture – March 23rd, 2023

The Big Picture – March 23rd, 2023

The focus lately has been on banks, and the massive amount of liquidity they have drawn from the Fed’s discount window is seen as cause for alarm (see chart below). I think there’s another less worrisome explanation and that is that after 2008, banks learned that it’s...

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The Big Picture – March 23rd, 2023

The Big Picture – March 21st, 2023

“We’re all quite mad here, you’ll fit right in.” – Alice in Wonderland If you wonder why the Fed would even consider another rate increase as banks hoard cash and lending standards for everything from autos to credit cards to business loans are tightening rapidly,...

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The Big Picture – March 23rd, 2023

The Big Picture – March 13th 2023

A few weeks ago, I remarked that it was strange that after a 300+ basis point increase in rates, nothing had “broken.” There were no hedge fund blow-ups, no huge trading losses, and no failed banks. I wondered if it was a matter of time, or if the industry and...

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