6 months ago, the Fed sheet of April 9 showed the following direct support to the banking system -
Term auction credit - $467.3 billion
Asset backed securities loans - $250.6 billion
Discount window loans - $49.2 billion
Total direct bank support - $767.1 billion
As of today, specifically the December 10 statement, the level of support for the banks is -
Term auction credit - $85.8 billion
Asset backed securities loans - $44 billion
Discount window loans - $19.4 billion
Total direct bank support - $149.2 billion
Net repayment - $617.9 billion
The banks are repaying their Fed loans with a fire hose. They are not borrowing from the Fed to repay the treasury; they have repaid the Fed 4-5 times more than they've repaid the treasury.
There is a huge positive cash flow in the direction of the banks. They are reducing the size of their own balance sheets, letting loans run off into cash without renewing all of them (their corporate clients are paying down debt, too, and refinacing short term bank loans based on prime rate for corporate bond offerings), and raising new capital in long term debt, preferred, and common stock offerings on the strength of improved financial markets.
Yup! With all these numbers the clearest fact remains. All this accomplished off the backs of savers and the elderly. The 30 day Treasury is paying 0.00%. Mr. Ben is doing everything in his power to squeeze savers into looking for higher returns ie: stock market. Just the slightest increase in interest rates would be enough to start a shift in positions. Cheap money has its cost.