Back in early April, one of the foremost experts on the practical applications of QE (there are many more “experts” on the discredited theoretical framework of QE, most of whom are career economists), Credit Suisse’s Zoltan Pozsar wrote a note titled “What Excess Reserves”, in which the former NY Fed analyst made a very clear case for why the Fed’s balance sheet will never shrink again (particularly in the context of the broken Fed Funds market). Some of the note’s highlights: