Critical Metric Is Now Over 1,000 Times Higher Than Normal!

"These Numbers Are Stunning – Earlier this week, I alluded to the terrific speech that Richard Fisher, the President of the Dallas Fed gave on Friday, in Hong Kong to the Asia Society.  It contained facts and numbers that boggle the mind – at least my simple little mind.

 

Early on, he refers to the fact that much of the easing the Fed has done – QE and otherwise – has tended to lie fallow.

 

Thus far, much of the money we have pushed out into the economy has been stored away rather than expended to the desired degree. For example, we have seen a huge buildup in the reserves of the depository institutions of the United States. Less than a fifth of commercial credit in the highly developed U.S. capital markets is extended through depository institutions. Yet depository institutions alone have accumulated a total of $2.57 trillion in excess reserves—money that is sitting on the sidelines rather than being loaned out into the economy. That’s up from a norm of around $2 billion before the crisis..."

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/4/10_Critical_Metric_Is_Now_Over_1,000_Times_Higher_Than_Normal%21.html