Chillin' out till it needs to be funded
The Fed will not be printing muchmpore money stock of course with US currency in ciruulation at $1.1T. Then there are the $1.6T in Treasuries the Fed will be using to lend to banks and extinguishing from its reserves to buy more MBS to $250B However Bank credit was actually down for the week, and the dollar index finally looking like US is well oiled and falling to 82 levels as it relaxes its hold on global currency trading. Money supply is again correcting as also possibly next week after the big injection of $59 B last week . Funny as Euro money supply is also constricted takingt he Euro above 1.26 on news of Angela Merkel coughing up in the Hellenic EU Summit examination.
This eek the holding of MBS was down to $854 B with Operation Twist not required in active remission. I wonder if any other data wil be bullish except the home sales data till retail sales growth of 3% starts looking a big plus in a few weeks but results season is at hand and in Q1 US Corporates did print $1.65 T in profits a 13% growth over 2011 Q1 reports. J P Morgan has likely survived the $9 B loss and the weekend should be cheerful