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Great Recession 2.0? Americans Pull Hundreds of Billions out of Banks at Fastest Pace in Four Decades
Red Wave press ^ | 6/17/23 | JD Heyes

Posted on 06/17/2023 8:23:54 PM PDT by CFW

Americans are pulling hundreds of billions of dollars out of banks at the fastest pace in nearly 39 years as many economic experts are beginning to predict a repeat of the 2008 “Great Recession.”

According to an analysis of the most recent data from the Federal Deposit Insurance Corporation (FDIC), “depositors took a total of $472 billion out of their accounts in the first quarter of this year – shattering a 39 year record,” the Daily Hodl reported.

“The quarterly decline is the largest reduction reported in the QBP since data collection began in 1984. This was the fourth consecutive quarter that the industry reported lower levels of total deposits,” the FDIC report said.

According to the FDIC, the “primary driver” behind the withdrawal of deposits was the movement of uninsured deposits as individuals sought to safeguard funds exceeding the FDIC-insured limit of $250,000. Interestingly, during the same period, the amount of insured deposits held by banks actually saw an increase, as people opted to diversify their risk, the outlet reported, adding:

The mass exodus follows the failures of Signature Bank, Silicon Valley Bank and First Republic, which were triggered in large part by the Federal Reserve’s aggressive interest rate hikes.

(Excerpt) Read more at redwave.press ...


TOPICS:
KEYWORDS: bankfailures; banks; biden; bidendestroyseconomy; bidenflation; bidenvoters; clickbaitadspam; depression; economy; recession
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I'm of the opinion that we are at more risk of a sudden depression than we are a recession. The government officials are so focused on pretending our nation's economy is doing great that they are ignoring warning signals indicating that it is not. At some point, even the upper middle-class's "safety net" is going to be depleted. As housing values drop (which will eventually happen and has already began in some markets), people will no longer have that HELOC to fall back on to get them through rough times. I believe that lay-offs this go round are going to hit middle-management the hardest rather than the lower-income blue collar workers as has happened in prior recessions.

When the house of cards, currently being propped up by false rosy headlines and fake economic data, starts toppling, many people are going to be caught unprepared.

Article from the Daily Hodl:

https://dailyhodl.com/2023/06/17/450000000000-to-exit-us-banks-as-treasury-kicks-off-massive-borrowing-spree-says-morgan-stanley/

1 posted on 06/17/2023 8:23:54 PM PDT by CFW
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To: CFW

Below is another interesting financial-related article regarding JPMorgan and Jeffrey Epstein.

https://wallstreetonparade.com/2023/06/72-hours-before-jpmorgan-offered-290-million-to-make-epstein-claims-go-away-a-lawyer-disclosed-that-the-bank-had-withheld-1500-documents/


2 posted on 06/17/2023 8:27:18 PM PDT by CFW (old and retired)
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To: CFW

https://dailyhodl.com/2023/06/17/450000000000-to-exit-us-banks-as-treasury-kicks-off-massive-borrowing-spree-says-morgan-stanley/

Hot links without the usual {a href=} are disabled in opening posts.


3 posted on 06/17/2023 8:31:55 PM PDT by lightman (I am a binary Trinitarian. Deal with it!)
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To: CFW

Inflation driving consumers to spend savings?


4 posted on 06/17/2023 9:01:58 PM PDT by Chad C. Mulligan
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To: lightman
The borrowing spree is a real interesting position...
Can anyone get a handle on the repercussions?
.. a lot of confusion... confusion brings instability..
I see bond yields going up ... but they dipped ...
I keep hoping to get into some , but I can't believe we are at the top.
I'm short the market ... getting hammered.
But I see no reason for the move up ...
the dax has been swinging 100basispt on no news

Lower dollar , higher inflation, more fed hikes,...on and on ...anyone have a clue ..
I'm open to suggestions

5 posted on 06/17/2023 9:03:46 PM PDT by 1of10 (be vigilant , be strong, be safe, be 1 of 10 .)
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To: 1of10

# 1: Reduce/eliminate your debt.
# 2: Diversify your assets.


6 posted on 06/17/2023 9:07:05 PM PDT by lightman (I am a binary Trinitarian. Deal with it!)
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To: Chad C. Mulligan

>Inflation driving consumers to spend savings?

More like various pseudo-financial orgs like Apple Pay and PayPal offering 4.5% savings interest.


7 posted on 06/17/2023 9:09:29 PM PDT by struggle
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To: Chad C. Mulligan

“Inflation driving consumers to spend savings?”


That’s what I suspect. Families are dipping into savings monthly in order to make ends meet. They continue to hope that there will be an end in sight or a light at the end of the tunnel with regards to increasing monthly expenses such as food and utilities. Not to mention rent. I think most middle-class families have cut expenses as much as they can with regards to discretionary spending. Where are they to cut next?

Some of us are blessed in that our homes are paid for and we have little or no debt. Not everyone is in that position. Family’s plans to pay down debt as their pay increased during the Trump years have been upended by the current inflation.

They can sell their home and take advantage of the current increased home values to get cash, but where will they move to in order to purchase a cheaper home and still retain their current employment (unless they are allowed to work permanently from home?).

People are being put firmly between a rock and a hard place. I see it daily as more and more travel trailers and RV’s (and even tents) are appearing in the back yards of homes with evidence that extended family members have taken up residence in those small living spaces and are happy to have at least that option.


8 posted on 06/17/2023 9:15:18 PM PDT by CFW (old and retired)
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To: CFW

it’s ridiculously foolish to leave large amounts of dough in low-interest, uninsured bank accounts, when it’s so easy to purchase +5.0% 90 day T-bills via an outfit like Schwab ...

personally, i think the two forces of no FDIC insurance and high short term interest rates are what are causing banks to lose deposits ...

the high short term rates, of course, are a direct result of demential joe’s mismanagement of the economy: first printing trillions of unneeded dollars, and then having the Fed try to slam the brakes on the guaranteed resulting inflating via interest rates increased at an unprecedented speed ...


9 posted on 06/17/2023 9:17:59 PM PDT by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
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To: lightman

# 1: Reduce/eliminate your debt....check.. done
# 2: Diversify your assets.........check ..done

I was hoping for something a little more actionable come tuesday morning..

Other tips that I have been givin..
plant your corn early ........ missed that still not done
buy low sell high .....working on that one
never introduce your wife as your “ first wife”... check

how about ... will tuesday 8:30 housing start numbers beat 1.4mil?
That sort of thing would really help.
What is Williams going to say tuesday at 11:45?
THAT WOULD REALLY REALLY help....
or do I just straddle up and ride ....


10 posted on 06/17/2023 9:19:54 PM PDT by 1of10 (be vigilant , be strong, be safe, be 1 of 10 .)
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To: CFW
According to the FDIC, the “primary driver” behind the withdrawal of deposits was the movement of uninsured deposits as individuals sought to safeguard funds exceeding the FDIC-insured limit of $250,000. Interestingly, during the same period, the amount of insured deposits held by banks actually saw an increase, as people opted to diversify their risk, the outlet reported, adding:

No more than $250k per bank...are people taking money out of one bank and moving them to another?

11 posted on 06/17/2023 9:51:04 PM PDT by Republican Wildcat
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To: Republican Wildcat

See, you would think this, and the $472-billion would never have ‘disappeared’...it’d just been parceled up and sent to another bank...to exist there. They didn’t say that, or this is a delayed thing with banks to mention new accounts and increased balances.

Some of this probably is cash turned to crypto-currency...with people thinking it’s safer (it’s not).

I’m also of the mind that some people might have the idea of using a safe deposit box at a bank, or a safe in the basement of their home....to place cash there (believing it’s safer than banks). There’s no interest gained, but there’s no threat to losses.


12 posted on 06/17/2023 10:41:23 PM PDT by pepsionice
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To: CFW

[Great Recession 2.0? Americans Pull Hundreds of Billions out of Banks at Fastest Pace in Four Decades]

BidenDepression 2023. I keep saying it.

Maybe early 2024? Joe and Kamala are such a disaster I don’t know how the country is taking it.


13 posted on 06/17/2023 10:57:11 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: CFW

Another factor here that is not mentioned is people withdrawing funds from large and regional banks that are paying next to nothing in interest, and transferring that money to high-yield savings accounts and CDs at online banks. I transferred a large sum to a high-yield savings account with an annual yield of 4.85% while I wait a little longer to see where CDs are going to top out. Some online savings accounts are paying as much as 5%, and they are as safe a place for your money (so long as you stay below the $250,000 FDIC limit) as you’ll find. I think that’s a big draw right now for those who have some money but don’t want to risk it in the stock market at the moment.


14 posted on 06/17/2023 11:19:04 PM PDT by noiseman (The only thing necessary for the triumph of evil is for good men to do nothing.y )
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To: 1of10

If you shorted the S&P you are one brave player.

That 500bil from the banks was uninsured deposits, over 250,000.

It went somewhere, and not in a mattress.


15 posted on 06/17/2023 11:31:55 PM PDT by eyedigress (Trump is my President!)
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To: CFW

Personally, I drew all my funds from Wells Fraud except the minimum weeks ago. Tens of thousands of dollars.


16 posted on 06/17/2023 11:40:28 PM PDT by wastoute (Anyone who believes PsyOps are not involved has never met a PsyOps Officer.)
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To: Chad C. Mulligan

That’s what it is. Big Mac is 8 bucks. Gas is 4. 12-pack of soda 7.99. Cigarettes are 9 dollars a pack, 8 for generic. Craft beer is 10 bucks for a 4-pack. Bread is 5.00 a loaf on sale. Don’t even ask about getting your lawn mowed or having your car serviced. The landscaper and the mechanic have to pay the same price as you do for the vices. I would bet that the only thing not more expensive is illicit drugs. They just mix in some fentanyl which is cheaper than tap water. Makes it seem better.


17 posted on 06/17/2023 11:52:50 PM PDT by webheart
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To: lightman
# 1: Reduce/eliminate your debt.

Why, for goodness' sake?! I've never understood that injunction!

The smart move would be to take out massive loans now, spend the money on noble metals, farmable land, a hidden stronghold, ammunition, food stores, etc. - and then pay the loans back after the inevitable Crash comes!

By then, a loaf of bread will cost a wheelbarrow of cash, so why not go into massive debt now, wait until the monetary system fails / society breaks down / what-have-you, and only then pay with what will have effectively become Monopoly money?

Regards,

18 posted on 06/18/2023 12:19:29 AM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
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To: eyedigress
That 500bil from the banks was uninsured deposits, over 250,000. It went somewhere, and not in a mattress.

From the article:

"Interestingly, during the same period, the amount of insured deposits held by banks actually saw an increase, as people opted to diversify their risk, the outlet reported"

Thus: Money moved from one pocket to the other.

Regards,

19 posted on 06/18/2023 12:23:02 AM PDT by alexander_busek (Extraordinary claims require extraordinary evidence.)
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To: eyedigress
ya where all that liquidity is flowing is a big stick in the wickit ... still flowing
I bet it ends up in bonds soon...
I expected a flow into stocks but a pass thru really.

The Treasury has to sell a lot of bonds ...2 trillion + and thats new bonds ... that's a lot of liquidity to pull out of the system ... on the other hand , they'll be dumping it back in the other end.
But the velocity is going to drag it . I personally think the fed blew it with a pause, inflation is still hot.
Soon the bond market will be setting the rates and the fed won't have control.
Traders want real return on their bonds... 2 trillion+
A lot of products chasing fewer $ = lower prices= higher yeilds=higher rates
Even retail will see 5% safe vs ? with risk..
And if it gets real rates should be north of 10% right now.
10% safe vs ? with risk .....
Of course that's just a few variables ...but that's what I'm looking at. How bout you?
remember I'm getting hammered right now so ..take it as you will ...

20 posted on 06/18/2023 12:24:02 AM PDT by 1of10 (be vigilant , be strong, be safe, be 1 of 10 .)
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