New Record Repo Volumes Of $2.126 Trillion As Bank Reserves Fall By Another $120B

Two trains traveling on the same track in opposite directions. One is carrying $2.126 trillion. The other $3.184 trillion. When they collide, how many dollars are burned in the explosion?

• Bank reserves are deposits held by banks at the Federal Reserve, not liabilities to anyone else.

• Bank reserves are at their lowest level since October 2023, only $184B above the previous $3T crisis level that preceded the regional bank bailout.

• The percentage of bank reserves taken up by repos is now at 67%, up 11% since June 12.

• Palladium update, some encouraging movement and potential bottom signal.

Sorry for the late post. I was driving most of the day to a Shiva (mourning) house and back of my former neighbor who lost his son fighting in Gaza last week. Nadav Knoller left a 29 year old widow and a 16-month old baby. Karnei Shomron, where I lived from 2009 to 2016, population 10,000, lost 3 girls at the Nova party on October 7, and 8 soldiers in the war. They have one of the heaviest casualty counts per capita in Israel.

Bank Reserves

Someone asked me what bank reserves are. The simple answer is