Chart of the Week: The Fed Balance Sheet
The Federal Reserve has grown its balance sheet from less than $1 trillion in assets in the first half of 2008 to nearly $4 trillion today. Unless the most conservative estimates of future Fed action are not met, the Fed balance sheet will go well over $4 trillion in early 2014 and could easily exceed $5 trillion before the program of LSAP (large scale asset purchases, aka QE) is finally wound down. This is an artificial stimulus that produces no real economic value and sends false signals to the real economy.
The following two and a half minute video is a quick review and discussion of the Fed balance sheet: