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Title: Thereís So Much Cash in Our Economy That Banks Donít Want More Deposits
Source: [None]
URL Source: https://www.nationalreview.com/corn ... s-dont-want-more-deposits/amp/
Published: Jun 10, 2021
Author: staff
Post Date: 2021-06-10 19:18:30 by Horse
Keywords: None
Views: 90
Comments: 20

The Wall Street Journal reports that bank are telling their corporate customers to stop making deposits. Yes, you’re reading that correctly: Banks don’t want more deposits.

The basic idea of banking is to take in money from deposits and lend it out at interest to borrowers. But with interest rates near zero, banks hardly make any money doing that, so taking in more money from deposits doesn’t do much for them.

Corporations are banks’ biggest customers, so they are the ones driving what the Journal calls a “surge” in deposits:

Bank deposits have continued to surge this year. Between late March and May 26, they rose by $411 billion to $17.09 trillion, according to the latest available data from the Federal Reserve. That is slower than the pace last spring, but still nearly four times the average of the past 20 years, according to the Fed data.

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#1. To: Horse (#0)

Does this make any sense?

_____________________________________________________________

USA! USA! USA! Bringing you democracy, or else! there were strains of VD that were incurable, and they were first found in the Philippines and then transmitted to the Korean working girls via US military. The 'incurables' we were told were first taken back to a military hospital in the Philippines to quietly die. – 4um

NeoconsNailed  posted on  2021-06-10   23:07:13 ET  Reply   Trace   Private Reply  


#2. To: Horse (#0)

There’s So Much Cash in Our Economy

I got an email from a woman who was on a joint US/UN mission in Syria. She told me her team came upon a horde of cash. Her share was $2 million and she needed help getting it out of the country. I smelled a scam coming on so I deleted the message. She did send me a nice picture of her holding a bull pup rifle though. ;)

"When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke

BTP Holdings  posted on  2021-06-11   2:50:44 ET  Reply   Trace   Private Reply  


#3. To: NeoconsNailed (#1)

The FED is printing lots of money to keep interest rates low.

The Truth of 911 Shall Set You Free From The Lie

Horse  posted on  2021-06-11   3:06:05 ET  Reply   Trace   Private Reply  


#4. To: Horse (#3)

Banks don't want as much loot on deposit as possible?

_____________________________________________________________

USA! USA! USA! Bringing you democracy, or else! there were strains of VD that were incurable, and they were first found in the Philippines and then transmitted to the Korean working girls via US military. The 'incurables' we were told were first taken back to a military hospital in the Philippines to quietly die. – 4um

NeoconsNailed  posted on  2021-06-11   13:37:23 ET  Reply   Trace   Private Reply  


#5. To: NeoconsNailed (#4)

We have a fractional reserve system. They don't need so many deposits. Deposits cost them money.

The Truth of 911 Shall Set You Free From The Lie

Horse  posted on  2021-06-11   14:30:53 ET  Reply   Trace   Private Reply  


#6. To: Horse (#0) (Edited)

Surreal. It sure seems big inflation is unavoidable. If this goes sour then taking notes now should be valuable for understanding the mechanics of how hyperinflation occurs.

Get your silver and crypto now!

Pinguinite  posted on  2021-06-11   15:59:30 ET  Reply   Trace   Private Reply  


#7. To: Pinguinite (#6)

Inflation will come to America when foreigners rebel at sending us their products for worthless American paper. Then America will fall off a cliff and wages drop 60%.

By the way, are you in Peru or Ecuador? The leading candidate for President of Peru is making noises about getting more money for their exports.

The Truth of 911 Shall Set You Free From The Lie

Horse  posted on  2021-06-11   16:10:00 ET  Reply   Trace   Private Reply  


#8. To: Horse (#7)

Ec

Pinguinite  posted on  2021-06-11   16:41:54 ET  Reply   Trace   Private Reply  


#9. To: Horse (#5)

Deposits cost them money? They don't invest it?

_____________________________________________________________

USA! USA! USA! Bringing you democracy, or else! there were strains of VD that were incurable, and they were first found in the Philippines and then transmitted to the Korean working girls via US military. The 'incurables' we were told were first taken back to a military hospital in the Philippines to quietly die. – 4um

NeoconsNailed  posted on  2021-06-11   17:22:35 ET  Reply   Trace   Private Reply  


#10. To: NeoconsNailed, 4um (#9)

Deposits cost them money?

Damn right they do! Jamie Dimon is payin' me a whopping 0.01% per month. That's almost a whole quarter a month.

Livin' the dream.

The light that burns twice as bright, burns half as long. - Dr. Eldon Tyrell

Godfrey Smith: Mike, I wouldn't worry. Prosperity is just around the corner.
Mike Flaherty: Yeah, it's been there a long time. I wish I knew which corner.
My Man Godfrey (1936)

Esso  posted on  2021-06-11   18:02:07 ET  Reply   Trace   Private Reply  


#11. To: Esso (#10)

Sure, but even in more 'normal' times bank profits overcompensate for interest to depositors -- amirite?

_____________________________________________________________

USA! USA! USA! Bringing you democracy, or else! there were strains of VD that were incurable, and they were first found in the Philippines and then transmitted to the Korean working girls via US military. The 'incurables' we were told were first taken back to a military hospital in the Philippines to quietly die. – 4um

NeoconsNailed  posted on  2021-06-11   20:16:56 ET  Reply   Trace   Private Reply  


#12. To: NeoconsNailed (#11)

Yes. That was then, this is now.

The light that burns twice as bright, burns half as long. - Dr. Eldon Tyrell

Godfrey Smith: Mike, I wouldn't worry. Prosperity is just around the corner.
Mike Flaherty: Yeah, it's been there a long time. I wish I knew which corner.
My Man Godfrey (1936)

Esso  posted on  2021-06-11   20:24:23 ET  Reply   Trace   Private Reply  


#13. To: NeoconsNailed (#9)

Banks can't invest. They can only loan it out.

The Truth of 911 Shall Set You Free From The Lie

Horse  posted on  2021-06-11   21:04:40 ET  Reply   Trace   Private Reply  


#14. To: NeoconsNailed (#9)

Deposits cost them money? They don't invest it?

I've thought on this a bit and here's the rub.

When you borrow money from someone, you take on a liability as you have to pay them back. The person who loaned you money has an asset, because they know/expect you will pay them money in the future.

With banks, it's the same way. When you deposit money into a savings accounts, you have effectively loaned THEM money, and they need to pay it back to you at a future date. So that money you deposited to the bank is a liability, not an asset. But for you it IS an asset.

These banks therefore are telling corps to take their money elsewhere because they don't want any more liabilities in the form of deposits. Reinvesting that money -- converting that cash into an asset to offset the liability, takes a bit of effort. Perhaps the banks are finding they can't find good places to invest the deposits they receive?

Pinguinite  posted on  2021-06-12   1:26:59 ET  Reply   Trace   Private Reply  


#15. To: Pinguinite (#14)

What you're saying is they're yearning to go out of business. I haven't checked lately, but don't they still advertise heavily?

_____________________________________________________________

USA! USA! USA! Bringing you democracy, or else! there were strains of VD that were incurable, and they were first found in the Philippines and then transmitted to the Korean working girls via US military. The 'incurables' we were told were first taken back to a military hospital in the Philippines to quietly die. – 4um

NeoconsNailed  posted on  2021-06-12   4:38:59 ET  Reply   Trace   Private Reply  


#16. To: Horse (#13)

Google "do banks invest your money" without the quote marks.

_____________________________________________________________

USA! USA! USA! Bringing you democracy, or else! there were strains of VD that were incurable, and they were first found in the Philippines and then transmitted to the Korean working girls via US military. The 'incurables' we were told were first taken back to a military hospital in the Philippines to quietly die. – 4um

NeoconsNailed  posted on  2021-06-12   4:41:52 ET  Reply   Trace   Private Reply  


#17. To: NeoconsNailed (#16)

Where does the bank invest your money?

The balance can be invested in real estate loans, commercial and consumer loans and government securities, with the banks' profit determined by the spread between what is earned on their investments less what it pays depositors in interest. The mix of these investments varies depending on the state of the economy.

The Truth of 911 Shall Set You Free From The Lie

Horse  posted on  2021-06-12   5:18:05 ET  Reply   Trace   Private Reply  


#18. To: NeoconsNailed (#15)

No, not saying that at all. Quite the opposite.

Banks still want to advertise. Certainly handing out loans is the solution to the problem of too much cash in the vaults, so advertising is good for that.

Of course, if banks have too much cash in house because of too many deposits, and they respond by loaning money out, then what's that do to the money supply? Due to fractional reserve banking, it adds more money to the economy than was deposited to the bank which aggravates the money supply problem even more.

Pinguinite  posted on  2021-06-13   14:31:34 ET  Reply   Trace   Private Reply  


#19. To: Horse (#17)

The balance can be invested in real estate loans, commercial and consumer loans

Keep in mind that when banks make loans, it increases the economy's money supply further.

Pinguinite  posted on  2021-06-13   14:32:48 ET  Reply   Trace   Private Reply  


#20. To: Pinguinite (#18)

Isn't that exactly what they do, with that horrible effect? Why do you use the word cash -- isn't virtually all of it funny money, ergo requiring no fizical space?

_____________________________________________________________

USA! USA! USA! Bringing you democracy, or else! there were strains of VD that were incurable, and they were first found in the Philippines and then transmitted to the Korean working girls via US military. The 'incurables' we were told were first taken back to a military hospital in the Philippines to quietly die. – 4um

NeoconsNailed  posted on  2021-06-13   20:49:27 ET  Reply   Trace   Private Reply  


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