The amount of money that depositors have removed from banks across the United States is ALARMING! It feels like we’re in the most unstable banking climate in the history of America.
There is scary new Federal Reserve data that’s been released. The data reveals that U.S. banks are not only struggling, but they could be on the brink of financial collapse.
Why? Let me explain…
On the week ending March 22, depositors withdrew an astonishing $126 billion from banks; the largest institutions in the country have been hardest hit. The top 25 banks alone have lost $90 billion, and the smaller banks, who suffered a similar fate last week, are just managing to stay afloat thanks to a recovery of only $6 billion.
Protect Yourself From Banks Collapsing – CLICK HERE
Since July 2021, total deposits have dropped to a pitiful $17.3 trillion, a 4.4% decrease from the same week last year. This is the lowest level EVER! Deposits decreased in each of the first two months of the year, continuing a long-term decreasing trend. The fourth quarter of 2022 saw a 5% yearly decline in deposits for all banks.
I mentioned some of these frightening statistics in this article here.
Experts blame the Federal Reserve’s aggressive attempt to reduce inflation for this worrying trend. During the early stages of the epidemic, interest rates were historically low, therefore banks had a surplus of deposits. Customers started looking for greater returns elsewhere as the Fed started to raise rates to slow the economy, which led to the first year-over-year loss in deposits for all banks in the second quarter of 2022.
Investors have now started pouring money into money market funds, with $508 billion flowing into those funds since January. Another $60 billion was added to these assets in the past week alone, signaling the beginning of a significant shift away from traditional banks. Additionally, they are quickly dumping ALL THEIR MONEY INTO GOLD!
Now, the good news is that regulators have promised to cover all depositors at seized banks, hoping to calm any panic and they are doing this because they are scared to death of what may happen if they don’t.
Regarding the First Replublich being on the verge of crumbling to pieces, 11 giant banks have decided to provide it with $30 billion in uninsured deposits to stabilize its situation. They are still very much in hot water and should be fearful.
Let’s not forget what recently happened with SVB. The customers at Silicon Valley withdrew all their money, taking more than $42 billion out in just one day. The result of that was a negative cash balance of $958 million.
The bottom line is quite simple. Things are not looking good and all signs point to them getting worse. My advice to you today is to find an alternative such as gold and secure your money while you can!
To Learn More About The Banking Crisis. Read This Report. – CLICK HERE
About Edwin Cannon
Edwin Cannon has spent his entire career in the financial industry and specializes in alternative investments and surviving marketing turbulence. He started My Retirement Paycheck to help educate consumers about retirement investment options that aren't typically introduced by advisors.