Posted on 05/11/2023 3:26:59 AM PDT by EBH
...the narrative has been that deposits are fleeing the small commercial banks and flooding into the biggest banks that are perceived as too-big-to-fail and thus offer a safer venue for deposits.
Because these mega banks are the same ones that the Fed has been bailing out since the financial crisis of 2008,
We decided to check out that narrative for ourselves. Not only is that scenario wrong, but it is so decidedly wrong, and it’s so easy to get the accurate figures, that from where we sit it looks like there might have been an agenda by someone to harm smaller banks. (Since it’s short sellers who have benefited to the tune of more than $7 billion from this misinformation, the Securities and Exchange Commission should find out who the public relations firms are who placed this erroneous information, and who paid them.)
Each Friday, at approximately 4:15 p.m., the Federal Reserve (“the Fed”) releases its H.8 report showing the assets and liabilities of commercial banks in the United States. Monthly deposit data is included going back one year, as well as deposit data for each of the last four weeks. Data is also broken down by the 25 largest banks and the approximate 4,000 small banks. Equally helpful, the folks at the St. Louis Fed make it possible to chart much of that H.8 data via its FRED charting tools. (See charts above and below.) The 25 largest banks in the U.S. lost a total of $644 billion in deposits between April 27, 2022 and April 26, 2023.
The three largest banks in the U.S.,representing 72 percent of the decline in deposits at the 25 largest banks. (That’s a crystal clear indication of just how dangerously concentrated banking has become in the U.S.)
(Excerpt) Read more at wallstreetonparade.com ...
She’s a crashin’.
At least one of those big banks notoriously pays interest asymptotic to zero
Crashing?
I have been chewing on this thought now for a while.
They needed to pull back all that money they flooded the economy with from the pandemic, wouldn’t these deposits etc. show that contraction is happening? AND while painful, it is a good thing, but it is not? Fewer dollars should equal a stronger dollar and more purchasing power of the dollar, but it does not?
So what is really happening here? Deflation against a backdrop of inflation?
Am surprised it isn’t more due to inflation, wages, etc Better known as the.biden economy. Everything else in print on this matter is nothing but lies !
I believe this is correct. At least, one of the big banks offered us $2500 bonus (you read that right) if we’d make a deposit. But you had to go into the branch. Why that? We skipped the offer. Twice now. Still, it must be observed that this is an ultra- cheapo bank that never gives you a damned thing normally. We thought right away that they’re super- hard up for funds. This bank has never offered two cents’ bonus before now. You can’t be paying “0.00000000001” percent interest and expect people to deposit —- ha!
Oh I think it is the Biden economy, but nothing is making sense because of the confounding big lies they are telling us.
I listen to a lot of preppers who have switched over in many cases since last year talking about home finance and preparing your home for what is coming. Get out debt, cash on hand, make sure your basic needs are fulfilled.
But I also follow several financial folks that evaluate the data and they’ve been saying for quite some time now, things are not what the public is being led to believe. Again, get your financial house in order. One just had a friend lose his job 8 weeks ago and could not even buy groceries this past weekend, because he did not listen to prepare. All 3 cards declined at the checkout because the Big Bank had shut them down or cut the credit line.
I agree
We can wastefuly speculate all we want.
Its all meaningless conversation and debate.
What’s needed is a list of the cash outflows and then find the common thread that binds the majority.
With that, we might be able to make some meaningful statements.
the intelligent ones moved out of cash into short-term paper - cd’s t’bills commercial paper for higher return and more safety.
Big banks are major Woke influencers.
bkmk
I can assure you it’s not the common man’s money, he’s tapped out and overextended.
The economy is failing, IMO, and the money movement might be in anticipation of the accumulated losses. You have to remember the accounting cycle and reporting is a post event.
Along the way are management decisions that can affect the impact and in many cases survival.
Not just safety, for a return nearer the inflation rate. Money is pouring into treasuries. There is no loan demand as the economy is contracting regardless of what Blighton tells us.
[the common man’s money, he’s tapped out and overextended.]
I think so too.
Wow! I see tens of thousands of Americans are thinking like I do. They’re disengaging.
My advice to anyone who cares to know: leave in the bank only the amount you can afford to lose. I admit banks nowadays are useful for paying bills. I also like the gift cards they give out as rewards. Otherwise, I don’t trust ‘em any farther than I can spit.
PFL
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