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SwimmingEnd1 t1_jef3b2d wrote

The reason why OP’s chart doesn’t tell the whole story is assets may be leaving deposits, and going to MMAs or CDs, but those MMAs and CDs are offered by banks. So net 0. A lot of grasping at straws to convince people we’re about to be in some major depression. It’s just not the case.


josephbenjamin t1_jeh0qtw wrote

Lots of people get credit from regional banks while big banks are stringent and under heavier “regulation”. If more regional banks close up or tighten up, it will create massive credit crunch. With bond prices up, you will essentially have low credit availability, since people can be more picky. It’s not simple math as most people assume. You can’t solve calculus formula with arithmetic level knowledge. Many issues are involved in this.