The Financial Ninja has some “scary” Federal Reserve Charts that help explain why the Fed will be cutting rates furiously. The charts are:
- Total Borrowings From Fed
- Non-Borrowed Reserves
- Net Free Borrowed Reserves
- Board of Governors Monetary Base
You don’t have to be an economics major to see that something is amiss in the charts. You see some pretty large slopes and spikes on the charts.
Now as to whether I would describe these charts as scary, I don’t think I have the background experience to say whether the charts are scary or not. All I can go on is my feeling that we’ll be able to work things out in the end and that what worked in the past won’t necessarily work in the present or the future.
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