Dismal's Smacks

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📈 Macroeconomics

July FOMC: "Various participants commented on risks that could affect some banks, including unrealized losses on assets resulting from rising interest rates, significant reliance on uninsured deposits, and increased funding costs."

July FOMC: "Various participants commented on risks that could affect some banks, including unrealized losses on assets resulting from rising interest rates, significant reliance on uninsured deposits, and increased funding costs."

Source: https://www.federalreserve.gov/monetarypolicy/fomcminutes20230726.htm Developments in Financial Markets and Open Market Operations: The manager turned first to a review of developments in financial markets over the intermeeting period. Market participants interpreted data releases as generally demonstrating economic resilience and a further easing of inflation pressures. The

Inflation Alert! New York Fed Business Survey (New York State, northern New Jersey and southwestern Connecticut): "Employment continued to increase slightly, and wage growth picked up.

Inflation Alert! New York Fed Business Survey (New York State, northern New Jersey and southwestern Connecticut): "Employment continued to increase slightly, and wage growth picked up.

The pace of price increases was somewhat higher than last month". Inflation is not slowing down! Wages and Prices expected to continue rising over the next 6 months. TLDRS: * New York Federal Reserve Bank's August 2023 Business Leaders Survey shows the region's (New York, southern

FDIC 2023 Risk Review: "Unrealized losses present a significant risk should banks need to sell investments & realize losses to meet liquidity needs."

FDIC 2023 Risk Review: "Unrealized losses present a significant risk should banks need to sell investments & realize losses to meet liquidity needs."

In Q1 2023, unrealized losses at $515.5 billion. Also, "banking industry is increasingly exposed to the broad & varied risks from nonbank activities" source: https://www.fdic.gov/analysis/risk-review/2023-risk-review/2023-risk-review-full.pdf Agriculture: * Despite facing droughts, the agricultural sector saw record profits this year. Farm banks

Interest paid for BTFP users

As of 7/31/23 total outstanding amount of all advances under BTFP was $119,127,391,000. The total value of the collateral pledged (at PAR!!) to secure outstanding advances was $144B. $1,683,694,000 in interest to survive another day...

Bank Term Funding Program (BTFP): https://www.federalreserve.gov/releases/h41/20230810/ DateBank Term Funding Program (BTFP)Up from 3/15, 1st week of program ($ billion)3/15$11.943 billion$0 billion3/22$53.669 billion$41.723 billion3/29$64.403 billion$52.460 billion3/31$64.595

Inflation Alert! In July, the purchasing power of $100 in January 2000 dropped to $55.20 (-$.20 from June).

Inflation Alert! In July, the purchasing power of $100 in January 2000 dropped to $55.20 (-$.20 from June).

Recall, CPI tracks the loss of purchasing power of your dollars & thereby the purchasing power of your hard earned labor. Folks are 2.1% worse off in terms of real value over the past year! Zooming in: CPI tracks the loss of the purchasing power of your dollars, and

BTFP usage

BTFP usage UP AGAIN ($106.864B vs $105.684B on 8/3), marking the 10th consecutive week over $100B. This looks more and more like there's an over-reliance on Fed Funding--growing faster than inflation 'should be,' I believe the BTFP is a moral hazard!

Hello and HAPPY almost Friday Superstonk! Borrowing from the Bank Term Funding Program hit a NEW all time high--the 10th consecutive week above $100 billion! What we are monitoring: 1. Bank Term Funding Program (BTFP) 2. Discount Window/Primary Credit 3. "Other Credit Extensions" I hope to shed

Household Debt and Credit 2023:Q2

New York Fed: Total Household Debt Reaches $17.06 Trillion in Q2 2023 (increased by $2.9 trillion since the end of 2019); Credit Card Debt Exceeds $1 Trillion for the first time. The Debt Time Bomb is Ticking...

Notice how Student loans is artificially suppressed? Wut mean?: 1. Credit Card Balances: A notable increase of $45 billion to a record $1.03 trillion, along with a rise in credit card account limits to $4.6 trillion. 2. Mortgages: Balances remained steady at $12.01 trillion. Mortgage originations, including