WEEKLY FED BALANCE SHEET REVIEW. THE LONG, LONG, LONG LIQUIDITY BOOM
. Federal Reserve: "Factors Affecting Reserve Balances", April 18

- Fed's Treasuries holdings: $778.3bn (+$3.7bn)
- Other central banks' Treasuries holdings: $1,235.9bn (-$0.2bn) (*)
- Other central banks' agency securities: $680.1bn (+$4.8bn) (*)
- Mackinlay's Global Dollar Liquidity Measure: $2,694.3bn (+$8.3bn)

(*) Off-balance-sheet items.
agustin_mackinlay@yahoo.com
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Out of the sixteen weekly Fed balance sheets reported so far in 2007, fifteen have yielded an increase in our Global Dollar Liquidity Measure. We are clearly witnessing the greatest liquidity boom on record, with our own measure growing north of 10% for fully ... 53 months in a row. While nobody knows how long this will last, I can't help but agree with investor Ken Fisher: when it comes to liquidity conditions, "We live in a unique period of history".

Meanwhile, our still untested and preliminary Endogenous Liquidity Index is up 1.6% on the week. The index was spurred by the Goldman Sachs share price and by CDS spreads, with junk bond spreads and the VIX acting as a drag.