Posted on 12/09/2023 7:57:35 AM PST by Kaiser8408a
“The Bank Term Funding Program (BTFP) was created to support American businesses and households by making additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. The BTFP offers loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations (see 12 CFR 201.108(b))”
‘Mortgage rates up 151% under Biden’.
Just saw a headline on the Yahoo homepage that said the economy was back to pre-pandemic levels.
I guess we’re back to .2% inflation, $2 gas and 3% mortgage rates. Hooray for Dear Leader Joe.
BANK DEPOSIT OUTFLOWS.
What is happening is that most regional banks do not have high yield savings accounts.
That means that if you put your money in a regional bank low yield savings account you will earn annual interest of under one tenth of one percent.
Some folks have moved money that used to be there to banks with high yield savings accounts that pay in the 4 to 5% range.
Some folks have moved it out of banks altogether into market market funds that pay in the 5% range.
It is amazing to me that the low interest paying regional banks have survived this long. They are doing it because they are not required to “mark to market” their real estate loans so their books look ok.
In fact they are broke.
My regional bank is giving me 5.5% for 9 months for a money-market. There is very little risk with a MM, why would anyone not take advantage of this?
Sure, you can put money in the stock market, but over the past 2+ years that has pretty much gone sideways with fairly big swings in between. Beyond a small amount, no thanks.
> the divergence between soaring money-market funds and bank deposits continues to widen… <
Well, yeah. A decent money-market fund is paying 5% or more. The brick-and-mortar banks around me are all paying around 0.2%.
I’ve read elsewhere that the banks don’t need extra deposits at this time. So they have no need to raise their rates to attract new money. That does make some sense. But who really knows what the man behind the curtain is really up to?
I understand that. IT is the headline to intentional confuse.
Ins and outs. The basic rule of all business.
My bank doesn’t have money market accounts... what’s your take on CD’s?
Here is an article on why many brick and mortar banks are not raising their interest rates paid to consumers:
https://www.experian.com/blogs/ask-experian/why-are-rates-low-on-my-savings-account/
My read on this is that most folks using these banks do not have a lot of savings so don’t care what the interest rate is.
In addition it has only been in the last couple of years that high yield savings accounts and money market accounts started paying significantly higher interest.
People are creatures of habit and are slow to change.
That is why this is a “slow bleed” that will just get worse and worse for the regional banks.
I have nothing against CDs—if they work for you go for it.
One of the grandkids is keeping $30,000 in her checking account. Earning 0%. (And yeah, she’s maxed out on her company (IRA or 401K - I forget which one) contributions.
An online high yield savings account is a great place to park five figures on a temporary basis—easy to get in and out—Marcus and Ally are two examples.
Another option is a Vanguard money market fund—insanely low fees and the “sweep fund” (where money goes if you do nothing) is currently paying 5% interest with only $3,000 required to open an account.
CDs are another good option.
I keep enough to pay my bills plus one paycheck worth. Anything more goes to a high yield savings account or my stock brokerage.
And that's a non-retirement account? Sounds good - I'll pass that one along. Thanks.
https://expose-news.com/2023/10/06/global-elite-devise-plan-to-take-everything-we-own/
In June 2023, hedge fund manager David Rogers Webb published a book titled ‘The Great Taking’.
The book, one commentator said, describes a legal framework for the seizure of trillions of dollars of assets from public and private institutions and people. It includes primary sources and a reasonable narrative explaining how a powerful class can subvert society for their own ends.
Webb wrote that his book is about the taking of collateral – all of it. In other words, we will own nothing.
excerpt:
The end game of the current globally synchronous debt accumulation super cycle. This scheme is being executed by long-planned, intelligent design, the audacity and scope of which is difficult for the mind to encompass. Included are all financial assets and bank deposits, all stocks and bonds; and hence, all underlying property of all public corporations, including all inventories, plant and equipment; land, mineral deposits, inventions and intellectual property. Privately owned personal and real property financed with any amount of debt will likewise be taken, as will the assets of privately owned businesses which have been financed with debt. If even partially successful, this will be the greatest conquest and subjugation in world history.
Private, closely held control of ALL central banks, and hence of all money creation, has allowed a very few people to control all political parties and governments; the intelligence agencies and their myriad front organisations; the armed forces and the police; the major corporations and, of course, the media. These very few people are the prime movers. Their plans are executed over decades. Their control is opaque. To be clear, it is these very few people, who are hidden from you, who are behind this scheme to confiscate all assets, who are waging a hybrid war against humanity.
Video documentary, The Great Taking (a little over 1 hr 10 mins):
https://m.youtube.com/watch?v=dk3AVceraTI&ab_channel=TheGreatTaking
I can go to Charles Schwab fixed income page and get a $1,000 TCD paying over 5%.
Anyone can open a Vanguard account for any reason—as I described.
Many folks sing the praises of Schwab.
My main issue with them is that they do not pay interest on their “sweep” account—but as long as you stay fully invested in something you are fine.
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