Source: JP Koning of Financial Graph & Art, Moneyness.

Category: Federal Reserve

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Visualizing the Fed”

  1. Petey Wheatstraw says:

    Love the interactivity of these charts.

    The MBS portion of the Asset chart is a good reflection of your earlier comment regarding bad mortgages on “Why Do So Many People Hate QE?”

  2. David Merkel says:

    Two thoughts: 1) each side of the balance sheet has gone from simplicity, to complexity to a different type of simplicity.

    Though not as nifty as the above graphs, I have written about this here:

    http://alephblog.com/2013/05/10/easy-in-hard-out-updated/

    2) The main changes is that the Fed’s balance sheet has a lot longer duration (and rising rates will make the MBS longer still), and they have created a lot of deposits in the banking system. I wonder how that will work out, because now the Fed is running a huge asset-liability mismatch. Long assets with short liabilities. Oh well.

  3. supercorm says:

    Those layers should be adding up on top of each others for a better view … not overlapping.

  4. holulu says:

    Will someone educate me please.

    I understand concept of ASSETS, it is bonds that FED bought (FED printed money and bought bonds).

    But, I have hard time to understand concept of LIABILITY, how FED can have liability? They can print unlimited money with no liability to anyone. I do not get it.