Thursday, April 9, 2015

FEDERAL RESERVE statistical release

According to the Federal Reserve Bank's balance sheet, as of April 1, 2015, it has total liabilities of   $ 4,424,144,000,000 and total capital of $ 57,656,000,000.  Hence, its leverage ratio is 76.73.  It is massively over-leveraged and on the brink of insolvency should interest rates (i.e. bond yields) rise even slightly higher.

Just for grins, Lehman Brothers' leverage ratio was 30 before it collapsed.

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