Although most of you have heard of the beating that the banks have taken over the past few months, it is always helpful to see a chart of the actual carnage to get the true flavour. I guess it would be kinda like George W. flying over the disaster area. The one below is of the most recent Non-Borrowed Reserves of Depository Institutions. It goes back about 50 years and it is clearly evident that bank holdings have hit a major air pocket of such magnitude that it cannot not really be compared to any previous action. The best part is that this chart was produced by the St. Louis FED and we all know how much sugar coating the FED boyz typically apply so one can only imagine how bad the real numbers actually are.

Asta la vista bankers - VHF