Link: Really Scary Fed Charts!

Oct 23, 2008: 2:39 PM CST

Ben at The Financial Ninja has kept a running monthly summary of various charts from the Federal Reserve that are absolutely worth viewing in full detail.

His most recent post is entitled, “Really Scary Fed Charts [for] October – Now ‘Crazy’ Scary!“.

Ben plots the Non-Borrowed Assets of Depository Institutions (hint – it’s very negative… as in close to -$200 billion negative) and then compares it to the Total Borrowings of Depository Institutions from the Federal Reserve which shows a spike up to almost $300 billion in new borrowing.

He then shows the Discount Rate of Borrowing as well as the Total Borrowings and the Reserve Balances for the Fed.

Each chart is taken directly from the St. Louis Federal Reserve’s website, which allows you to customize your own views based on the data they’ve made freely public.

Ben then provides some commentary, additional links, and sources for more information.

If you can bring yourself to look at what he’s found, it’s a great read.


3 Responses to “Link: Really Scary Fed Charts!”

  1. tomterrific Says:

    All Right Corey. I would like to have had your Uber Bear targets for the S&P yesterday but if you are wiling to share them I would like to compare notes. I don’t think that disclosing them on this Website or to me is going to hurt anyone unless they are not an adult or a Congressman.

  2. Corey Rosenbloom Says:

    Haha – yah I just saw how a few instant messages between analysts were entered into Congressional testimony.

    The ‘low hanging fruit’ target would be the 2002 lows at 775 but that’s perhaps a foregone conclusion now – which would be an ABC Expanded Flat Elliott Pattern. In fact, if it is indeed an expanded flat, we would expect a penetration of those lows.

    Also, if the Equality principle holds, then Wave 1 (on the monthly/weekly charts) was around 350 S&P points so whenever Wave 4 completes fully, subtract 350 points from the high to arrive at the Elliott Equality target for wave 5. I bet it takes us beneath the 2002 lows just based on that.

    See? Not so bad. Yet.

  3. tomterrific Says:

    Thanks so much Corey. My target with my own work is 765 on the S&P 500. God help us all including us Bears if we break that level in this catch a falling knife market. What is strange is that even though I am really bearish it is hard for me not to buy stuff that looks cheap but gets cheaper. Not a fan of Mark Hulbert but he has a great post on MarketWatch today that shows how OVERVALUED this market may be.