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Fed Tricks Markets with Trillion-Dollar Clandestine Tightening – Investment Watch


While the Fed’s current tightening is not exactly a well-kept secret, stock and bond markets seem willing to ignore what the Fed’s left hand is taking away as the right hand is giving. Reverse repurchase agreements, which I have been tracking here, have exploded to a trillion dollars in money that the Fed is sucking out of the financial system.
According to John Mason at 
Seeking Alpha, total reverse repos on the Fed’s balance sheet actually just hit $1.26 trillion this past week:
Factors Affecting Reserve Balances of Depository institutions and Condition Statement of Federal Reserve Banks) had increased by $847.0 billion. This past week, the Fed added an additional $205.0 billion more in reverse repos to the account,  ....

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Over-Fed but Malnourished – Investment Watch


Is the inflation I’ve been writing about really all just transitory as Papa Powell claims it is? The Fed Head assures us he has this under control. Would that be just like Father Fed and friends had bank reserves under control right before the repo crisis blew up in late 2019? Or just like they had their Great Rewind under control right before the stock market imploded in late 2018 due to Fed tightening that was promised to be as boring as watching paint dry?
Or just like Janet Yellen, the author of paint-by-numbers boredom, now has everything under control, except apparently her yellin’ mouth: ....

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Why M1 Money Supply (Cash) is Skyrocketing Like No Time History – Investment Watch


In my last Patron Post, which I eventually made available to everyone, I revealed a little-known (at the time) fact that M1 money supply (the most liquid forms of cash bills, checks and basic savings accounts) had grown faster than any time in history. I showed that using a graph like the following, which is now brought up to the most current data:
With part of December now in the picture, you can see the faintest hint at the top of the steep late-November climb that shows the climb may be rounding off.
I noted,
That is a massive amount of new cash money  historically massive  done almost covertly in the quickest burst ever  and yet it did not even cause the stock market to blink!…  ....

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