The Home Stretch Towards the Final Liquidity Crunch

Can We get Through January?

• Bank reserves have decreased by $228 billion in the past two weeks, bringing them back to November levels.

• Deposits are up $200 billion, but this is likely due to seasonal patterns rather than increased liquidity.

• The Federal Reserve has experienced significant losses, potentially due to the utilization of the Bank Term Funding program.

• We look to be in the home stretch towards the final liquidity crunch.

As you watch the woman above do a home stretch, consider the following in a yogish mindset as the End Game closes in…