Showing posts with label deposits. Show all posts
Showing posts with label deposits. Show all posts

Tuesday, March 19, 2013

US Deposits In Perspective: $25 Billion In Insurance, $9,283 Billion In Deposits; $297,514 Billion In Derivatives

http://www.zerohedge.com/news/2013-03-19/us-deposits-perspective-25-billion-insurance-9283-billion-deposits-297514-billion-de
The $25 billion in touted deposit insurance is supposed to preserve and protect (granted not in their entirety) some $9,283 billion in total US deposits. A far bigger problem, however, is when one considers the "asset" side of the US banks' ledger: remember deposits are unsecured liabilities. And for US banks, sadly, over the counter derivatives represent the vast majority of "off the books" assets. According to the latest OCC quarterly report, the total derivative notional outstanding of the Top 25 holding companies is $297,514 billion, or nearly $300 trillion. In other words there are 32 times more notional derivatives than there are total deposits, while the ratio of gross derivatives to deposit insurance is a concerning 11,900-to-1.

Tuesday, April 24, 2012

Greek deposit and loan growth

Click on image to enlarge.

Wednesday, August 24, 2011

Too many depositors, not enough borrowers

When the black line (loans) catches up to the blue line (deposits), the economy will recover, the huge monetary base transforms into money supply, the multiplier effect kicks in, and we'll have (high) inflation.