We’ve produced some research over the years that we’d love to see the powers-that-be react to, but none more so than our look at financial flows during the QE programs.
By netting all lending by banks and broker-dealers and then comparing it to the Fed’s lending, we stumbled upon a chart that seemed to show exactly what QE does or doesn’t do. But ‘doesn’t,’ not ‘does,’ was the story, and it couldn’t have been clearer. Or shown a more stimulating pattern. To geeks like us, our Excel click on ‘Insert, Line’ was like stepping from a shady trail to a sunny vista.
Here’s the updated chart, which we dubbed the ‘argyle effect’ and looks even sharper than it did when we first produced it in 2014:
This post was published at FinancialSense on 11/01/2017.
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