Financial Contagion

The rates of debt growth remind me of rising growth curves in pandemics:

U.S. Fed balance sheet increases to record $6.62 trillion

"(Reuters) - The Federal Reserve’s balance sheet increased to a record $6.62 trillion this week as the central bank used its nearly unlimited buying power to soak up assets to keep markets functioning amid an abrupt economic free fall due to the coronavirus pandemic.

"Since early March, the Fed has slashed interest rates to zero, restarted bond purchases and rolled out an unprecedented range of programs to keep credit flowing and shore up business and household confidence.

"The central bank’s balance sheet as of Wednesday rose about $200 billion from $6.42 trillion a week earlier. That is up from just $4.29 trillion in the first week of March.

"It is now the equivalent of roughly 30% of the size of the U.S. economy before the crisis struck, and will certainly grow larger in the weeks ahead as the Fed keeps piling on assets and the economy shrinks."

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