More Than $84 BILLION in Deposits Have Exited The Big Three Banks in One Quarter

In a single quarter, $84.5 billion in deposits vanished from three of America's largest banks—JPMorgan Chase, Wells Fargo, and Citi—according to their reports. The declines in bank deposits are nothing short of astounding: ● JPMorgan Chase saw $31 billion leave its vaults in Q3. ● Wells Fargo saw a decrease of $7.1 billion. ● Citi’s outflow totaled $46.4 billion. In fact, deposits are falling across all commercial banks, according to the St. Louis Federal Reserve. Meanwhile, JPMorgan's Jamie Dimon drops a reality bomb on shareholders—flagging global frictions and warning of impending rate hikes (not rate cuts, mind you). He warns that in the coming months, we’re entering a perilous economic era that can’t be compared to any other we’ve seen before. The main culprit? Inflation, contrary to mainstream media’s messaging, isn’t going away. It’s going to be a much longer-term problem. “Persistently tight labor markets as well as extremely high government debt levels with the largest peacetime fiscal deficits ever are increasing the risks that inflation remains elevated and that interest rates rise further from here. If there’s any institution that might be considered the “smart money,” it’s the banks; certainly not the Fed. Banks have everything to lose. Fed economists, on the other hand, have the luxury of walking back their statements or admitting their errors without any financial loss that would constitute an existential threat to their existence. Dimon continues: “We still do not know the longer-term consequences of quantitative tightening, which reduces liquidity in the system at a time when market-making capabilities are increasingly limited by regulations.” The failures of monetary policy is one thing. Then there’s the factor of global events which is virtually beyond the reach of monetary and fiscal policy. “Furthermore, the war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships.” This flight of capital that the Big Three and other regional banks are experiencing signifies a vote of no confidence in the current fiscal monetary path and possibly in the banking system at large. THESE ACTIONS—DEPOSIT OUTFLOWS IN THE BILLIONS—REPRESENT AN INDICTMENT THAT’S CLEARER THAN ANY FED REPORT CAN ARTICULATE. As we monitor this cataclysmic convergence of economic pressures and geopolitical disturbances, banks (and soon governments) will face the daunting task of averting disaster. The true test of our economic resilience and strategic foresight is here. How you hedge your wealth in the coming months will determine how much of it you’ll have left, or how much more you’ll accumulate, in the coming years.

More Than $84 BILLION in Deposits Have Exited The Big Three Banks in One Quarter

Bill Brocius Mar 14

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