Sunday, July 21, 2013

Running on ZIRP (Musical Tribute)


Click to enlarge.

The declining trend channel in red shows the annual growth of the money with zero maturity (left scale).

The declining trend channel in blue shows the interest rate on the three-month treasury bill (right scale).



Update:

Here's the same chart with better scaling.


Click to enlarge.

Source Data:
St. Louis Fed: Custom Chart
at

7 comments:

  1. Stagflationary MarkJuly 21, 2013 at 7:48 PM

    I've added a bonus chart so that you can see what I'm seeing a bit better.

    ReplyDelete
  2. Rob DawgJuly 21, 2013 at 9:37 PM

    But the good part is that the banks have used this to deleverage so as not to get caught when the music stops.

    ReplyDelete
  3. Stagflationary MarkJuly 21, 2013 at 10:35 PM

    Not only that, but there's a thin protective barrier currently being deployed around the huge corporate profits. 98% effective! Feels like nothing is there at all.

    You know, just in case Main Street gets ****ed again.

    Shame on me for going there! ;)

    ReplyDelete
  4. Mr SlipperyJuly 23, 2013 at 10:21 AM

    The real 3 month yield is less than zero.

    We know it's game over if the long bond goes zero dark thirty.

    ReplyDelete
  5. Stagflationary MarkJuly 23, 2013 at 11:41 PM

    Mr Slippery,

    Would you settle for Zero Dot Thirty on the 2-year treasury? ;)

    ReplyDelete
  6. Mr SlipperyJuly 24, 2013 at 3:54 PM

    Zero Dot Thirty. Haha! Copyright that one.

    ReplyDelete
  7. Stagflationary MarkJuly 24, 2013 at 5:06 PM

    Mr Slippery,

    I suspect that we'll see Zero Dot Product during the next recession. D'oh!

    (Can't resist a math pun. ;))

    ReplyDelete