How the Coming Credit Crunch Could Harm the Economy and Real Estate Prices

How accelerating bank deposit withdrawals could harm the economy, including real estate prices. How dollars slosh around the financial system but always seem to end up at the Federal Reserve.

Topics covered include:How many deposits have left banks since the Silicon Valley Bank collapseHow much have banks borrowed from the Federal Reserve to meet deposit withdrawalsWhy exiting deposits are harming bank profits and causing them to make fewer loansHow the credit crunch could hurt commercial real estate valuesHow money market mutual funds differ from banksHow today's banking crisis is similar to the 1980s savings and loans crisisWhat should investors do to protect their wealth

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Show Notes

Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks—The Federal Reserve

Assets and Liabilities of Commercial Banks in the United States—The Federal Reserve

All U.S. Banks Net Interest Margin—BankRegData

Current Treasuries and Swap Rates—Chatham Financial

Options trading surges as investors brace themselves for US regional bank volatility by Stephen Gandel and Nicholas Megaw and Colby Smith—The Financial Times

Bank Turmoil Squeezes Borrowers, Raising Fears of a Slowdown by Jeanna Smialek—The New York Times

Banks' Demand for Reserves in the Face of Liquidity Regulations by Jane Ihrig—Federal Reserve Bank of St. Louis

Money Market Funds: Investment Holdings Detail—The Federal Reserve

Deposit Outflows Shine Light on Fed Program That Pays Money-Market Funds by Eric Wallerstein and Nick Timiraos—The Wall Street Journal

ICI Research Perspective: Trends in the Expenses and Fees of Funds, 2022—Investment Company Institute

FAQs: Reverse Repurchase Agreement Operations—Federal Reserve Bank of New York

US Resolution Trust Corporation by Aidan Lawson and Lily Engbith—SSRN

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