Thursday, November 12, 2009
If the Recession is Over How Do you Explain This?
Why would the banks be increasing their reserves held at the Federal Reserve in what the graph shows as longer and faster than any period since the steep clime in late 2008 if the recession were really over? It is obvious the banks are still scared stiff as we all should be worried since things will get a lot worse before they get better.
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Before Lehman fell, it took the fed 14 yrs to 2x the monetray base of currency and reserves in the bank. After Lehman fell, the fed took 196 days to do the same, 45x the amount.
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