Here are some updates to the recent discussion on loan growth weakness relative to rising deposit balances at US commercial banks
Tag Archive for Bank Reserves
Contributors- Economic and Financial, Must Read, Taken Down
How bank reserves make the gap between deposits and loans disappear- Sober Look
by Sober Look • • 0 Comments
Earlier this week, CNN Money ran a story on JPMorgan’s quarterly results. Instead of focusing on the earnings, the author’s (Stephen Gandel) discussed the fact that JPMorgan’s loan-to-deposit ratio (LTD) hit a new low.FORTUNE: – The nation’s large…
Contributors- Economic and Financial, Must Read, Taken Down
QE ineffectiveness is playing out on banks’ balance sheets- Sober Look
by Sober Look • • 0 Comments
Cash holdings are an increasingly large component of US commercial banks’ balance sheets. This demonstrates the fact that thus far the Fed’s monetary expansion is not producing the “optimal” result. Banks are not growing the non-cash portion of their b…
Contributors- Economic and Financial, Must Read, Taken Down
The Fed’s latest dilemma- Sober Look
by Sober Look • • 0 Comments
The Fed continues to be divided over the next steps for its unprecedented monetary expansion program. Varying interpretations and conflicting headlines in the press leave the public bewildered and frustrated. The following two stories for example have …
Contributors- Economic and Financial, Must Read
Real and Illusory Credit – Frederick J. Sheehan
by Frederick Sheehan • • 0 Comments
“When Ro-Ro goes No-No” expounded upon the ultimate futility of conjuring illusory wealth. Bernard Connolly’s analysis, “Rethinking the Rogoff-Reinhoff Thesis,” made the case. Connolly wrote This Time is Different: Eight Centuries of Financial Folly, “is largely an exercise in measurement rather than theory (while many of the data in the book are new, little or…
Contributors- Economic and Financial, Must Read, Taken Down
Fed’s balance sheet grows above $3 trillion, finally impacting the monetary base – Sober Look
by Walter Kurtz • • 0 Comments
This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. Total assets of Fed’s balance sheet broke through $3 trillion last week, hitting a new high, as securities purchases are stepped up (including treasuries). Fed’s balance sheet as of 1/16/13 (source: FRB) And for the first time since…
Contributors- Economic and Financial, Must Read, Taken Down
US repo rates spike – Sober Look
by Walter Kurtz • • 0 Comments
The US repo rates have risen to a 3-year high this week. The chart below shows the so-called General Collateral (GC) treasury repo rate. GC simply means that the borrower under the repo loan can post any treasury securities as collateral – as…
Contributors- Economic and Financial, Must Read
When Zero Rates Don’t Work
by Frederick Sheehan • • 0 Comments
Frederick J. Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009) and “The Coming Collapse of the Municipal Bond Market” (Aucontrarian.com, 2009…
Latest Business Headlines
China’s Fall in Bank Deposits May Pinch Lending – Wall Street Journal
by Newswires • • 0 Comments
Wall Street JournalChina's Fall in Bank Deposits May Pinch LendingWall Street JournalBy DINNY MCMAHON BEIJING—Falling deposits at China's banks, as households seek higher returns for their savings, may challenge banks' ability to ramp up …
Email Bulletins Archive, Lee's Free Thinking, Must Read
WTF Did All That Printed Money Go?
by Lee Adler • • 6 Comments
The article is excerpted in part from the Wall Street Examiner Professional Edition Fed Report. Try it risk free for 30 days. Normally when we think of printing money, we are talking about the Fed buying Treasuries, or some other securities from the Primary Dealers. The PDs then take the cash and buy Treasuries from…
