Posted on 03/29/2013 5:00:22 AM PDT by MeneMeneTekelUpharsin
US Federal Reserve is reporting a major deposit withdrawal from the nations bank accounts. The financial system has not seen such a massive fund outflow since 9/11 attacks. The first week of January 2013 has seen $114 billion withdrawn from 25 of the US biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed. Financial analysts suggest it could be down to the Transaction Account Guarantee insurance program coming to an end on December 31 last year and clients moving their money that is no longer insured by the government.
The program was introduced in the wake of the 2008 crisis in order to support the banking system. It provided insurance for around $1.5 trillion in non-interest-bearing accounts with a limit of $250,000. It was aimed at medium and small banks as the creators of the program believed bigger banks would cope with the crisis themselves. So the current fast pace of withdrawal comes as a surprise to financial analysts because the deposits are slipping away from those banks which supposedly were safe. Experts expected savers in small and medium banks would turn to bigger players come December 31.
There are a number of reasons behind this unpredicted fund outflow. Some experts believe it has to do with the beginning of the year when the money is randomly needed here and there. Others have concluded the funds are getting down to business and being invested. Another set of data from the US Federal Reserve shows some deposits may have moved within the banking system from one type of account to another.
Me thinks you may be right.
Fasten your seatbelts, here we go....
Good post. Possession is 10/10ths in a lawless environment.
Why hasn’t OUR media covered this is my question? Anyone?
They don't want to upset their golden delicious apple carts? Plebes need to pay for their pampered lifestyle? They're in the matrix of marxists? They get to manipulate meandering morons? In the pyramid of progressive power pay is plentiful? They get facetime with familiar fascists?
I don’t think this is such a big deal. Heck, at the interest rates banks are paying these days, it’s a wonder ANYONE is keeping any money in the bank.
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