Sitting on a Pile of Cash

Weekend Update # 2

Sitting on a pile of cash while the world crashes around you...

That is what i see in today’s markets. To have this perspective you have to put the Fed Balance Sheet front and center. It changes everything. The crashes of 2001, 2009, 2020, while each being different, had an element of some sector running out of cash. Today we live in an era of Big houses and Big SUV’s cars with low mortgage and car payments due to low interest rates.

Taking the story one step further…

We are told High gas prices will add $ 200 billion to consumers costs this year, but putting that into perspective, that is only 5 percent of the 4 trillion dollars of the ill gotten Fed Balance sheet over the past two years, or 2.5 percent of what has been added since 2009. And that is not to mention that 80 percent of that 200 billion will come back to the US Big Oil Companies.

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