Aaron Krowne of ML-Implode.com, Russ Winter of Winter Watch, and the Wall Street Examiner’s Lee Adler discuss the mysterious slush fund on the Fed’s balance sheet and the massive wave of cash entering US banks backing Bernanke’s “synthetic QE3.” For bears short term risk may represent long term opportunity.
Subscribers can click the player at the bottom of this post (visible on Radio Free Wall Street main site only) to listen to today’s podcast, or use this link to download. If you are not a subscriber and would like to hear not only today’s podcast but all 10 or 11 podcasts each month, click this button to start your subscription. It takes less than a minute to complete the signup form and start listening.
Never miss another Radio Free Wall Street podcast. Sign up for instant email notification in the left sidebar.
iTunes users can download your subscription podcasts by using Subscribe to Podcast under the advanced tab. Enter the rss feed url http://radiofreewallstreet.fm/?feed=radio-free-wall-street-complete-podcast-for-subscribers. After subscribing, choose the podcast you wish to listen to. When prompted, enter your user name and password.
Note to subscribers: We have received direction from the Fed to a definition of the “Other” Deposits. They are: Other deposits at Federal Reserve Banks include balances of international and multilateral organizations with accounts at FRBNY, such as the International Monetary Fund, United Nations, International Bank for Reconstruction and Development (World Bank); the special checking account of the ESF (where deposits from monetizing SDRs would be placed); and balances of a few U.S. government agencies, such as the Fannie Mae and Freddie Mac.
The simple, most benign explanation is that these are deposits of Fannie and Freddie as they receive massive prepayments of loans being refinanced. For those of you who believe in darker conspiracies, see the part I have put in bold.