We are in the midst of a Major League Silent Bank Run on Bank Deposits as money flows to Money Market funds – more bank failures likely in 2024

Citizen Watch Report ^

[davikkm]

Many banks are kept afloat by borrowing from a special short term rescue fund at the Fed. To date over $ 100 billion has been borrowed to keep the banks solvent. The banks are sitting on a keg of financial dynamite with over $ 650 billion in unrealized losses on Treasury securities in addition to dealing with their silent bank run problem. The Banks are having a bunch of massive problems related to their lending business as well.

[ClearCase_guy]

[cgbg]

“To date over $ 100 billion has been borrowed to keep the banks solvent”

Quibble with the article—the banks are insolvent—which means the value of their liabilities exceed the value of their assets.

The money they borrowed from the fed gave them liquidity—so they did not run out of cash.

When they run out of cash they are....

Closed.

[Mariner]

Some internet banks are offering 5%+ on your deposits. CDs approaching 6%.

There’s a reason Wells Fargo and B of A are both under .5% for savings, as are most big banks.

[Dr. Franklin]

Quibble with the article—the banks are insolvent—which means the value of their liabilities exceed the value of their assets.

And because of this inflation is needed to relatively decrease the liabilities of the big banks. It's been done for a purpose, to help the big banks at the expense of the pensioners, etc.

[suasponte137]

I moved all my savings out of my local bank recently. I looked a few months ago and saw they war paying me literally .1% interest in my money market savings account....when interest rates nationally are like 5%.

I moved everything out except what I use month to month in checking, and put it into a high yield savings account with American Express.

I’d would have accepted a slightly less competitive interest rate from my local bank and still allow them to hold my savings...but they weren’t even remotely competitive. Borderline insulting actualy.

[woodbutcher1963]

TBills generally 5.2%

https://treasurydirect.gov/auctions/announcements-data-results/

[sauropod]

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[monkeyshine]

We parked nearly all cash into money markets and 6 month treasuries a few months ago. Both are paying over 5%. What did the Fed think people would do? Leave them in a 0.25% checking account?

[gundog]

[politicket]

I keep just enough with the banksters to pay bills. The rest goes into short-term (4-wk) US Treasuries.

Actually had one bank call and say they noticed the interest payments on my T-bills and wanted to bring that money back into their bank as 6-month CDs.

Told them not only to get lost, but grilled them on why they were snooping on my account for advertising purposes.

[USS Alaska]

We parked nearly all cash into money markets and 6 month treasuries a few months ago. Both are paying over 5%.

Me too, but I stayed with my same bank. I could've earned another 3/4 point interest but I didn't trust the institution.

I am now earning thousands of dollars where before I was earning four to six bucks a quarter.

[woweeitsme]

I don’t mean to sound like a moron, but how does this affect credit unions? I have checking/savings/car loan through the credit union...

[moovova]

And no state tax.

[Vaduz]

Starting to smell like a depression coming on no uptick in the money flow.

[Alberta's Child]

Great scene in a great movie.

[Georgia Girl 2]

We’ve moved most of our money out of the bank and into hard assets. We keep enough to pay the monthly bills.

[PAR35]

FDIC has been staffing up for a while now.

[sauropod]

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