{"id":1451945,"date":"2024-01-19T21:40:00","date_gmt":"2024-01-20T02:40:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1451945"},"modified":"2024-01-19T21:40:00","modified_gmt":"2024-01-20T02:40:00","slug":"fed-fkery-is-back-adjustment-turns-108bn-bank-deposit-outflow-last-week-into-nothing","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/fed-fkery-is-back-adjustment-turns-108bn-bank-deposit-outflow-last-week-into-nothing\/1451945\/","title":{"rendered":"Fed F**kery Is Back: ‘Adjustment’ Turns $108BN Bank Deposit Outflow Last Week Into Nothing…"},"content":{"rendered":"

Fed F**kery Is Back: ‘Adjustment’ Turns $108BN Bank Deposit Outflow Last Week Into Nothing…<\/span><\/p>\n

\n

With The Fed having practically lost control of their bank bailout facility (BTFP)<\/strong><\/a> due to banks pilings 10s of billions into a free-money arbitrage in recent weeks (enabled since Powell pivoted)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

…it was no surprise they pushed back a little yesterday, hoping to encourage (wean off) banks to use the discount window instead – because the $161BN BTFP will go extinct in March.<\/strong><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Amid all this free-money for the banks, total deposits (seasonally-adjusted) fell for the second week in a row (down $12.3BN)…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

On a non-seasonally-adjusted basis,<\/strong> banks have seen deposit outflows of $111BN in the first two weeks of 2024…<\/strong><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

And Fed Fuckery is back on display…<\/p>\n

Excluding foreign banks, Domestic bank deposits plunged $107BN (NSA) last week <\/strong>(Large banks MSA -$87.3BN, Small banks NSA -$20.3BN), <\/em>while they were practically unchanged on an SA basis -$348MN<\/strong> (Large banks SA +5.13BN, Small banks SA -$5.48BN)… <\/em><\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Interestingly, since NSA domestic deposits reached their pre-SVB levels, they have seen major outflows…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

On the other side of the ledger, loan volumes surprisingly (given the deposit outflows) surged back last week<\/strong> with large bank loan volumes up $14.2BN (the first rise in loans in 6 weeks) while Small Banks saw loan volumes up $15.2BN on the week…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

All of which means – as we pointed out previously – “March will be lit”<\/strong><\/em>…<\/p>\n

March will be lit:<\/p>\n

1. Reverse repo ends
\n2. BTFP expires
\n3. Fed cuts (allegedly)
\n4. QT ends (allegedly)<\/p>\n

\u2014 zerohedge (@zerohedge) January 8, 2024<\/a><\/p>\n

Because without the help of The Fed’s BTFP, the regional banking crisis is back bigly<\/strong> (red line), and large bank cash needs a home – green line – like picking up a small bank from the FDIC…<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

And now you know why The Fed will cut rates in March – no matter what jobs or inflation is doing.<\/em><\/a><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 01\/19\/2024 – 16:40<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Fed F**kery Is Back: ‘Adjustment’ Turns $108BN Bank Deposit Outflow Last Week Into Nothing… With The Fed having practically lost control of their bank bailout…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1451945","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1451945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1451945"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1451945\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1451945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1451945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1451945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}