Curious if anyone working at a hedge fund are looking at ways to potentially make $ off of the incredible build-up of Excess Reserves at the Fed. Nobody seems to be talking about this, but it has gone from zero in 2008 to nearly $2trillion. Not sure how to make $ off of this, but is it sustainable?
Would like to know others thoughts. See chart at... http://research.stlouisfed.org/fred2/series/EXCRESNS
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What do you mean make $ off of this? Everyone and their mother IS making $ off of this already and has been doing so for a few years...
As to whether it's sustainable, sure, why not, anything is possible...
and they're making money off it how?
Not directly off it. However, inasmuch as excess reserves at the Fed are a manifestation of the macroeconomic backdrop and, correspondingly, the Fed's stance, there's all sorts of themes that have been in play for a good few years now.
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