The Center for Financial Stability (CFS) Divisia monetary aggregates and components often reveal nuances surrounding future moves in the economy and markets as well as a real time perspective of the US financial system. The November release is no exception.
– “Market finance” (or what some like to call “shadow banking”) is shriveling to the detriment of the economy and financial market liquidity.
– Access to market finance has shriveled by 45% in real terms since 2008 – the largest cyclical drop in the last 40 years.
For Shriveling Shadow Banking Limits Liquidity and Damages the Economy:
For October Divisia Monetary and Financial Data Release Report: