Banks Have a Mountain of Deposits So They Don’t Need PPP Funding

[Meredith Poor + 883]

https://www.bloomberg.com/news/articles/2020-06-01/banks-have-a-mountain-of-deposits-so-they-don-t-need-ppp-funding?srnd=premium&sref=RzXyyOXY

Savings rates in the last six weeks or so have been 33% of people's gross pay, mostly because people can't fly, take vacations, eat out, or otherwise make large expenditures. This has flooded the banks with money, accelerating debt repayments and to some extent making more money available for investment.

[BLA + 1,666]

On 6/1/2020 at 9:43 AM, Meredith Poor said:

https://www.bloomberg.com/news/articles/2020-06-01/banks-have-a-mountain-of-deposits-so-they-don-t-need-ppp-funding?srnd=premium&sref=RzXyyOXY

Savings rates in the last six weeks or so have been 33% of people's gross pay, mostly because people can't fly, take vacations, eat out, or otherwise make large expenditures. This has flooded the banks with money, accelerating debt repayments and to some extent making more money available for investment.

The "Banking System" is fine.

It's the "Shadow Banking" that is taking a heavy hit.  They are in trouble.  

Look out. 

[Enthalpic + 1,496]

On 6/1/2020 at 7:43 AM, Meredith Poor said:

https://www.bloomberg.com/news/articles/2020-06-01/banks-have-a-mountain-of-deposits-so-they-don-t-need-ppp-funding?srnd=premium&sref=RzXyyOXY

Savings rates in the last six weeks or so have been 33% of people's gross pay, mostly because people can't fly, take vacations, eat out, or otherwise make large expenditures. This has flooded the banks with money, accelerating debt repayments and to some extent making more money available for investment.

https://www.cbc.ca/news/business/consumer-debt-equifax-1.5613674

Consumer debt went down for the first time in over a decade.