Banking Crisis just got WORSE. Fed reporting $400 BILLION in Losses.

The Federal Reserve just reported that Banks lost nearly $400 Billion in deposits in March 2023. The biggest monthly drop in deposits in US History in the wake of the banking crisis.

Depositors pulled their money out of the banks due to the failure of Silicon Valley Bank and fear of contagion. The underlying reason this is occurring is because the Money Supply in the US Economy is contracting due to the Federal Reserve's Quantitative Tightening program.

The four other times in US History where the money supply contracted - the Great Depression, Depression of 1920, Panic of 1893, and Long Depression of the 1870s - there was a deflationary banking crisis.

Suggesting that if the money supply continues to contract, and depositors take more money out of the banks, then the banking crisis could continue later in 2023. Economists like Mohamad El Erian think this could be the case. He suggests that the banking crisis will have a "long tail" and impact the US economy negatively in Q3/Q4 of 2023 as banks tightening lending.

Moreover - regulation of the banking system by the Biden Administration could also cause issues in the banking system by causing banks to tighten their lending by even more.
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Видео Banking Crisis just got WORSE. Fed reporting $400 BILLION in Losses. канала Reventure Consulting