Capital Liabilities @ Money Center Banks - JPM, CITI, WELLS, BOADeposit gains were concentrated @ JPMorgan Chase, Bank of America, Wells Fargo
and Citigroup.
Liabilities expanded dramatically faster than smaller, Regional Banks throughout 2021.
The government's Fiscal Policies unleashed Trillions of dollars to support small businesses
and individuals via stimulus checks and unemployment benefits.
There were mass bailouts of Industry, enormous amounts of money was given to Corporations.
As you can see from the Chart above - growth was extraordinary as hoarding among individuals,
and corporations reached a peak until very recently.
JPM, CITI, WELLS, BOA made it clear additional deposits (Liabilities) were NOT welcome.
Their answer - go pound sand in Money Markets. Effectively there is no sweep as Short Term
T-Bills are unavailable.
Why herd Cash into a Corner? No one puts baby DX in a corner.
Apparently they do and did. It's not for good either.
At a time when Banks are attempting to bolster their balance sheets, call in loans on consumer
lines of credit, reduce mortgage lending, auto lending and revolving debt lines... the pushback
clearly demonstrates the lack of Tier 1 collateral.
Apparently that is not Cash.
Let's see if they can get a big chase going in Equities and entice some willing Cash into the Big
Casino. Given the Value proposition - TINA.
There is always an alternative, we simply crossed the Rubicon long ago with respect to common
sense and a willingness to enforce the "No".
