November 29, 2011

Simply put, the reduction in adjusted reserves comes out of excess reserves and some of the excess reserves are put to work creating loans. If our story is correct, this signals the end of the de-levering effect and as the reserve/deposit ratio declines, we can effectively see an increase in the banks’ deposit and credit creation ability.

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format