Bank Meltdown Is Coming As Latest Data Reveals Something Is Terminally Broken In The US Bank System
A remarkable and yet concerning development in the banking sector is signaling the financial system is in big trouble. Severe imbalances between the volume of loans and deposits in all four of the U. S. biggest banks are indicating that the overflow of liquidity issued and pumped into the system by the Federal Reserve over the past 12 months is triggering operational problems for banks and setting the economy up for failure. The loantodeposit ratio is a measure of how much money printed by the central bank enters the bank system and how much money is created by private entities, the first being responsible for bad inflation higher prices for assets and goods, lower growth and the second by good inflation boosting economic growth with real money. The largest US bank, JPMorgan, just released its latest earnings report in which it exposed that in the second quarter its total deposits went up by a staggering 23 yearoveryear, to 2. 3 trillion. On the other hand, the total amount of loans issued by the b
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