Thursday, December 12, 2019

FED Balance Sheet

It is worth a review of the FEDs Balance Sheet again. Let's start simple:
It is clearly going down from the peak after 2008. Slow but progressive. A health change. Now some details:
The biggest drop is in the junk real estate stuff from the banks mortgage fiasco, for which only the taxpayer suffered.
The above is all key items but again the previous two dominate. Junk mortgages and junk dollars.
This is a short term view which means we are slowly getting better. Assuming no chaos we can see 2020 remain reasonable. But that assumes Congress is sane, questionable.