Why do banks have $8 trillion in uninsured deposits?
Why do cash reserves, not new loans, dominate the increase in M2 over the past decade?
Why were banks enticed into accumulating Treasury securities that have led to massive balance sheet losses?
Why is $#%! about to break? pic.twitter.com/mldVMkIPzJ
— John P. Hussman, Ph.D. (@hussmanjp) May 8, 2023
Banks have successfully fooled depositors into accepting 0.4% interest on savings while the bank makes +5% on treasuries
The biggest risk for banks is the consumer figuring out they can move their money out of banks and buy treasuries or money market funds themselves
— Genevieve Roch-Decter, CFA (@GRDecter) May 8, 2023
The Treasury and the Fed may have to come in and actually restrict your right as a US citizen to pull money out of the US banking sector, due to capital flight from the US banking system, Hugh Hendry said on Bloomberg.
— unusual_whales (@unusual_whales) May 8, 2023
They’ve created a massive gap between money market account (Treasury Bill) interest rates at ~4.5% and bank account interest rates at <1%.
That’s a massive incentive to move money out of bank accounts!
— Elon Musk (@elonmusk) May 8, 2023
A record $1 trillion has been withdrawn from banks over the last year.
Over $500 billion has been withdrawn since January 1st.
The banking crisis is only part of the problem.
Large banks must raise interest rates on deposits ASAP.
— The Kobeissi Letter (@KobeissiLetter) May 8, 2023
"Sound, stable, strong and resilient"
— Janet Yellen 😰 pic.twitter.com/zknoMMrx4J
— Wall Street Mav (@WallStreetMav) May 8, 2023
US bank failures, so far: pic.twitter.com/Bls1NjY2hY
— unusual_whales (@unusual_whales) May 8, 2023
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