Here is my most recent Scare-Chart™:



All this is is a visual representation of what the Federal Reserve TAFs are doing. For the last 50 years, depository institutions have managed to provide most of the funds needed to cover their reserve requirements.

Even though the reserve requirements are exceedingly paltry these days, the banks cannot maintain them (or they have gotten lucky and don't need to maintain them since the Fed has provided this short term lending facility.)

Mainly, it just shows you that this has never been done before. Who knows what it means? Do you know what it means? What does it mean? Is it a temporary blip?