From the Zero Hedge blog, regarding changes in the Federal Reserve’s balance sheet over the last week:
Total [bank] depository reserves [at the Federal Reserve] increased by $30 billion to $886 billion – the banks are lending even less! Didn’t Geithner in testimony perjure himself by claiming how banks are lending our more than ever during the span of the recession? Exhibit A is just this number, which is the highest since the end of May 2009. The actual deposited cash is likely used by these institutions to purchase Treasurys thereby making the auctions such a sterling success (and, if they have a gun to their head – MBS and Agencies).
Break out the ball and chain, folks.