Maybe Financials Are the Way To Go, Record Window Dressing via Reverse Repo

The last day of April the F_E_D saw the second largest reverse repo (banks buy collateral from the F_E_D and sell it back the next day), this was done the last day of April which is pure window dressing to fool regulators and investors in to thinking the bank is healthier with more collateral than it actually has.

That second highest number ever for the last day of April (monthly ,window dressing) was just trumped today with a new record of $340 Billion in reverse repos submitted to the F_E_D for the last day of the quarter, remember these will be bought back by the F_E_D tomorrow through their open market's desk at the NY F_E_D. This was a $200 billion dollar increase overnight submitted by 97 financial institutions, setting a new record...WINDOW DRESSING AT ITS MOST EXTREME AND A CLEAR SIGN THE FINANCIALS ARE NO WHERE NEAR AS STABLE AS THEY TRY TO PORTRAY AS THESE SAME ASSETS GO RIGHT BACK TO THE F_E_D TOMORROW AS THE NEW QUARTER STARTS!

The bottom line is there's nearly 1/3rd of a trillion dollars in collateral shortfall among these 97 financial institutions ALONE! The irony is the banks do this the last day of the month, quarter or year end to fool investors and the banks' regulator which is THE F_E_D ITSELF!

Now you have an idea why I prefer the idea of a general short on Financials rather than trying to pick out which one has the worst balance sheet/collateral shortfall.