QE Unwinds: Fed’s Assets Drop for 3rd Week, Another -$76 Billion. 3-Week Total: -$163 Billion | Wolf Street

The chart above shows how the Fed front-loaded QE when the crisis erupted, throwing $1.5 trillion at it in the first four weeks, when financial markets came unglued and when credit was freezing up, and when investors in overleveraged hedge funds, mortgage-REITs, and other risk-takers were about to learn a lesson about capitalism – which the Fed’s bailout made sure they didn’t have to learn.

The curve of the total amount of Treasuries on the Fed’s balance sheet has gone from crazy-steep in March and April back to the same slope that it had in January and February before the Everything-Bubble bailout mania:

QE Unwinds: Fed’s Assets Drop for 3rd Week, Another -$76 Billion. 3-Week Total: -$163 Billion | Wolf Street