As of March 8, bank reserves during the week averaged $2.999 trillion, Fed data show, falling around $1.3 trillion from a peak of $4.3 trillion in December 2021. In the last QT cycle, $1.3 trillion in liquidity was withdrawn in five years.
"If the Treasury is unable to issue bills because of the debt ceiling, then you get more cash into reverse repos and that brings reserves down further," said John Velis, FX and macro strategist at BNY Mellon in New York. That low deposit rate has led to deposit outflows. Deposits have been declining since the second quarter of last year, according to Fed data on banks' assets and liabilities.
"But banks reliant on non-core funding, have deposit concentrations, or large unrealized losses in their securities portfolios could face more pressure in this environment."Deposit outflows, reverse repos, and bank reserves are all inter-related. Deposits are finding their way into money market funds which invest in reverse repos. Higher reverse repo usage, in turn, effectively cuts reserves.
Everyone saying Bitcoin doesn’t realize that it trades like a risk asset and will drop in price. I love crypto but you have to stop the stupid narrative.
thankfully my $$ is safe in the Bitcoin network 🤌
Bitcoin ceo says end the fed and the us and Reuters
They are doing 2008 all over again. Bitcoin solves this.
BTC is the answer. Self custody be your own bank no need for a middle man
Empire of debt, Empire of lies, Empire of evil, Empire of vice.🙂
So where to invest? Gold, silver, Are the markets safe?
After what happened in Silicon Valley, everyone should take notice.
احمد_الحسن فتح_المکتب
Didn’t have bank runs on the 2023 bingo card
Go WOKE, Go BROKE applies to the US government too! 😉
How hard is it to stop spending more than you take in?