Money For the Rest of Us

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

Apr 12, 2023

28:20

AI Chapters

Episode notes

Introduction

3min

The Bank Term Funding Program and the Recession Risk

3min

How to Survive a Recession

3min

The Importance of Bank Deposits

3min

The Impact of Banks Pulling Back Their Lending

4min

The Increase in Reserves at the Federal Reserve

4min

Money Market Mutual Funds

3min

The Effects of the Pandemic on the Money Market

4min

The RTC and the Savings and Loan Crisis

1min

10.

The Fed and Central Banks Stabilize Economic Trends

2min

11.

How to Invest in the Economy

3min

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 collapse
How much have banks borrowed from the Federal Reserve to meet deposit withdrawals
Why exiting deposits are harming bank profits and causing them to make fewer loans
How the credit crunch could hurt commercial real estate values
How money market mutual funds differ from banks
How today's banking crisis is similar to the 1980s savings and loans crisis
What 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