The Fed balance sheet continues to weaken as it attempts, in vain, to support the housing market. No exit strategy will appear until the economy collapses. The Fed will stop, or rather be stopped, only when the country is so hopelessly in debt that no one will buy Treasuries. The dollar at that point will have fallen close to its intrinsic value — ZERO.
Fed Balance Sheet At New Record After $11 Billion Weeekly Increase In MBS/Agency Debt
Submitted by Tyler Durden on 11/27/2009 18:28 -0500 The Federal Reserve’s balance sheet hit a new all time record of $2.2 Trillion in assets, after an $11 billion spike in MBS and Agency purchases week over week.
- Securities held outright: $1,785 billion (an increase of $92 billion MoM, resulting from $2 billion in new Treasury purchases, which have tapered off at $776.5 billion, $79 billion increase in MBS and $12 billion in Agency Debt), or a $11 billion increase sequentially.
- Net borrowings: $218 billion. Number for the November 25th week has not been updated.
- Float, liquidity swaps, Maiden Lane and other assets: $195 billion. The CPFF program was flat at $15.0 billion, a second weekly rebound from the all time low. FX liquidity swaps declined by $2.5 billion $26 billion, bringing these to another fresh 52 week low. Maiden Lane I and Maiden Lane II were at $26.4 and $15.8 billion, while Tim Geithner’s Goldman rescue package better known as Maiden Lane III came at $22.9 billion.
Foreign holdings declined by $7.5 billion to $2,925 billion.