Image Source: Money market funds saw yet another week of inflows (+$40BN), taking the total AUM to a new record high of $6.508 TN…Source: BloombergThe inflow into MM comes as bank deposits (on a seasonally adjusted basis) dropped a modest $13BN to the week-ending 10/23…Source: BloombergBut, on a non-seasonally-adjusted basis, total deposits plunged $133BN (the biggest weekly decline since April)…Source: BloombergExcluding foreign deposits, it’s even uglier. On an NSA basis, US deposits plunged $131BN – the biggest weekly drop since April (Large banks -$97BN, Small banks -$34BN). But, by the magic of The Fed’s PhDs, the ‘seasonal adjusted’ domestic deposits fell just $3BN (Large banks +$8BN, Small banks -$11BN)…Source: BloombergThis is the biggest Large bank deposit drop since May…Source: BloombergThis should only be worrying if we see liquidity problems in the banking system starting to occur.Wait, what?Source: Bloomberg…and reverse repo usage is collapsing (liquidity needs?)Source: BloombergIs that why USA sovereign risk is blowing out?Source: BloombergAre they holding back a banking crisis for Trump’s victory?More By This Author:Nvidia To Replace Intel In The Dow Jones Industrial Average; Stock JumpsJobs Shock: October Payrolls Huge Miss As Private Jobs Drop For First Time Since 2020China Urges Automakers To Stop Investment In EU Countries Amidst Trade War
US Big Banks Suffer Biggest Deposit Outflow Since April… Until The Fed ‘Adjusted’ Them
