She’s a crashin’.
At least one of those big banks notoriously pays interest asymptotic to zero
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!
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.
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
These banks pay little or no interest on deposits. Why? They have more money than they can lend to creditworthy customers, so they don’t need the deposits they have.
Naturally, large companies have to keep their money somewhere. But if they don’t need their money immediately, they can do something like buy 3 month T-bills at 5%. Corporate treasurers know how to manage cash, so this is exactly what they’re doing. This is why shorter term interest rates have come down.
I dropped big banks a long time ago. Their service is awful with a bunch of arcane rules dreamed up by some wet behind the ears Harvard graduate.
With the small banks I deal with I can walk in and deal directly with the guy running the thing like a normal person. And what they do makes sense.
An investment advisor is telling people to pull their cash from the banks. Just wow. We’re probably going to see the banking system in crisis shortly.
The government is promoting a big lie that the banking system is safe, when in fact, it’s imploding. WHEN will people who have been supporting this government turn on it? When???
https://www.zerohedge.com/markets/futures-slide-bank-selloff-returns-pacwest-tumble
“US equity futures pared an earlier advance and dropped to session lows driven by a fresh plunge in Pacwest shares after the bank warned the bank run was back (or rather, had never gone away as we warned last weekend) as a renewed sharp deposit outflow from the bank spooked investors, even as European stocks rose as more investors said the Fed is likely to pause interest-rate hikes on the back of cooling inflation data. Contracts on the S&P 500 dropped to session lows, down -0.1% after rising 0.2% earlier; the Nasdaq was flat.”
A week or so ago, the markets all heaved a big sigh of relief as “experts” said the banking sector crisis was largely over. I said at the time that such was not true as deposits at banks are still down and many regional banks are still at risk. The reporting today shows I was correct.
Why do you think you are seeing advertisements begging for new accounts as they promise you a thousand dollars for opening an account with a $20,000 deposit? The banks NEED those deposits.
No wonder gold has been on the up tick.
Thanks.
BKMK