Sunday, April 12, 2009

Net Free or Borrowed Reserves Exploding Again (Graph)

Net Free or Borrowed Reserves 412

From 2003-01-01 till 2007-11-01, the observations reflect excess reserves minus total borrowings plus secondary borrowings. From 2007-12-01, the definition changes to excess reserves minus discount window borrowings plus secondary borrowings. Please, check the latest definition of the discount window borrowings at

This explains the attempt to pump up the volume and create profits at banks. Is starting back up and is having an explosive effect.
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