US Banks (Depository Institutions) insolvent since January 2008

Title: Non-Borrowed Reserves of Depository Institutions
Series ID: BOGNONBR
Source: Board of Governors of the Federal Reserve System
Release: H.3 Aggregate Reserves of Depository Institutions and the Monetary Base
Seasonal Adjustment: Seasonally Adjusted
Frequency: Monthly
Units: Billions of Dollars
Date Range: 1959-01-01 to 2008-09-01
Last Updated: 2008-10-10 10:00 AM CDT
Notes:

DATE VALUE
1959-01-01 10.560
...
2007-01-01 42.098
2007-02-01 42.425
2007-03-01 42.235
2007-04-01 42.497
2007-05-01 43.084
2007-06-01 43.187
2007-07-01 41.559
2007-08-01 44.047
2007-09-01 41.101
2007-10-01 42.182
2007-11-01 42.258
2007-12-01 27.244
2008-01-01 -3.510
2008-02-01 -17.353
2008-03-01 -50.232
2008-04-01 -91.847
2008-05-01 -111.647
2008-06-01 -127.905
2008-07-01 -122.316
2008-08-01 -123.492
2008-09-01 -187.309
Edit: added following line
2008-10-01 -363.136 Ref: www.federalreserve.gov...

----- Forwarded Message ----
From: St. Louis Fed Economic Research
Sent: Friday, October 10, 2008 5:22:35 PM
Subject: Update: FRED Data Series: BOGNONBR, Non-Borrowed Reserves of...

The following Federal Reserve Economic Data (FRED) series has been updated:

Non-Borrowed Reserves of Depository Institutions
Frequency: Monthly Units: Billions of Dollars
Seasonal Adjustment: Seasonally Adjusted Last Updated: 2008-10-10 10:00 AM CDT

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[edit on 12-10-2008 by Dbriefed]

[edit on 12-10-2008 by Dbriefed]

So... The Federal Reserve is almost $200 Billion in the hole? Or is this some other fund they've been looting?

edit: Wait... didn't the Fed just start paying interest on Bank's reserve capital? That would be a huge lie then because there is no reserve capital...

[edit on 10/12/2008 by mythatsabigprobe]

reply to post by Dbriefed


Not sure I quite understand this lol ..

The Federal Reserve prints money from nothing? .. That is to say, it's made up .. Any money that they loan out is just created and charged a (small) interest..

You know I'm having a lot of trouble believing this whole crisis isn't caused by the "mark to market" rule that took effect in November 2007. Every index took a dive immediately afterwards and this just confirms that Banks starting drawing on their reserves at the same time. The financial analysts poo-poo that idea, but this graph tells me otherwise.

I've added a line which shows US bank reserves went from negative $187Billion in September to negative $363Billion in October.

Reference is the latest Federal Reserve release for H3.
www.federalreserve.gov...

• December - Bush trys to warn Congress
  
• January - depository institutions reserves go negative for the first time
  
• March - Congress holds secret session, followed by Congressional leaks about a September market crash followed by a February government crash
  
• September - US market starts to crash
  
• October - global market started to crash
  
• October - Credit Default Swap issue starts to appear in mainstream news ($55Trillion in insurance of Bonds)
  
• October - Lehman Brothers bonds settle for less than 10cents per dollar - insurers hold the balance
  
• October - employees log into their 401K accounts and make a run from mutual funds to bonds
  
• October 31st, employee changes to their 401K options hit
  
• October-November is the Hedge fund window, 50% of investors are projected to withdraw
  

This is going to be bad. Even the federal reserve says the banks have no money, and the trendline is getting worse.


[edit on 12-10-2008 by Dbriefed]

the chart says St. Louis. Any idea where to find the chart for the entire USA?

Does anybody remember Bush sending Putin a letter that Putin described as "very serious"? What month was that? Also, I remember the special closed meeting of Congress but what was the reason they gave the public for that?

Found it. Bush Sends Putin "Very Serious Letter"

The secret meeting of Congress was held March 13, supposedly to discuss the FISA legislation being debated, although even the people pushing for the meeting couldn't verify that was going to be the topic. Here's a video, worth watching just for Dennis Kucinech's comments on the whole thing.

The question each one of you should ask is this: "Where did the money come from?".

Here is another way to state it: "How can a bank loan out more money than it has deposited?". If I have, for example, 5 apples, I can only loan out 5 apples, unless I buy or borrow more. How does someone possess 5 apples, and loan out 7 of them, without buying/borrowing more apples?

(Those are rhetorical questions. I know the answer)

[edit on 13-10-2008 by sir_chancealot]

reply to post by sir_chancealot


It came from China that's why the U.S. debt to China is so large.