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 wealthFor more information on this episode click here.SponsorsMasterworks – invest in contemporary artUse code MONEY10 to get 10% off on your NAPA Autoparts online order.Insiders Guide Email NewsletterGet our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.Show NotesFactors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks—The Federal ReserveAssets and Liabilities of Commercial Banks in the United States—The Federal ReserveAll U.S. Banks Net Interest Margin—BankRegDataCurrent Treasuries and Swap Rates—Chatham FinancialOptions trading surges as investors brace themselves for US regional bank volatility by Stephen Gandel and Nicholas Megaw and Colby Smith—The Financial TimesBank Turmoil Squeezes Borrowers, Raising Fears of a Slowdown by Jeanna Smialek—The New York TimesBanks' Demand for Reserves in the Face of Liquidity Regulations by Jane Ihrig—Federal Reserve Bank of St. LouisMoney Market Funds: Investment Holdings Detail—The Federal ReserveDeposit Outflows Shine Light on Fed Program That Pays Money-Market Funds by Eric Wallerstein and Nick Timiraos—The Wall Street JournalICI Research Perspective: Trends in the Expenses and Fees of Funds, 2022—Investment Company InstituteFAQs: Reverse Repurchase Agreement Operations—Federal Reserve Bank of New YorkUS Resolution Trust Corporation by Aidan Lawson and Lily Engbith—SSRNRelated Episodes270: Repo Rates Soared—Here’s Why It Matters333: How The Covid Shock Nearly Destroyed The Financial SystemSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.