Americans are hoarding money in checking accounts

Bank deposits are soaring and Americans are not putting that money in the stock market. One source says there is $10,000,000,000,000 in deposits in banks. Wonder if these depositors have ever heard of a hair cut?

Cash — or something close to it — is king again.

Enjoying a steady job market but reluctant to spend freely due to economic uncertainty, a wide swath of middle-class Americans are hoarding money in banks.

Total bank deposits rose 6.6% last year to $10.7 trillion, extending steady growth seen in recent years, data from the Federal Deposit Insurance Corporation show.

Deposits measured as a percentage of bank assets are 77.6% in the first quarter of 2017, the highest since 2006, according to data economic research firm Moebs Services.

www.usatoday.com...

A huge increase from just 10-20 years ago. The 2008 crash has changed how Americans handle money, for the short term. Of course there is very little interest in bank accounts. But the $$$ is still there if the stock market crashes because multi-billion dollar corps play grab ass with the world econ.

a reply to: seasonal

Oh, nice bank bailout money!

You know depositors are "unsecured creditors" for the banks now.

allnewspipeline.com...

www.moneymetals.com...



www.collapsingintoconsciousness.com...

a reply to: seasonal

i don't. Never trusted strangers with my money.
We need to do away with all banks.

a reply to: seasonal

These figures and growing trend wouldn't happen to account for our ever rising inflation would it? Because I could see how a lot of that growth could very well be accounted for by inflation...

a reply to: seasonal

Not surprising.

Folks who watched what happened in the last market collapse are naturally a bit hesitant to go through that again.

a reply to: scraedtosleep

Those consumers should be dropping that money of expensive merchandise made over seas by slave labor.

We still live in a consumer econ and this money being "horded" is a bad thing.

Not this american...I'm a cash business all the way.

The looks I get when I say I don't have a bank account are almost like the looks I get when I say I don't have facebook.

My checks are cashed the day I receive them...don't have large sums but if I did I would just get a safe.

a reply to: RickyD

Just read an article about no inflation is forcing the Federal (not part of the govt) reserve to go slow with raising the interest rate because of very little inflation.

What inflation are you talking about? Homes for sure have gone through the roof (again).

One day, not far in the future, a Monday morning will come when the banks don't open.

And that's when it'll begin.

a reply to: seasonal

It's not a ton but they're pretty consistent month after month...And it appears in 2017 they're even higher than 2016. Over 20 years I'd say it probably accounts for a decent chunk of change.

source

a reply to: underwerks

I think there will be a hair cut first or a very small % charged by banks to "house" your money safely in the bank. This will support the failed system for a while longer.

I would urge people only to keep a minimum in the bank, and get some hard assets that can be easily identified and traded in small units for small items. (junk silver comes to mind) If you are worried about a skid hitting scenario.

Who did they interview?

The owners of Amscot?

bwaaaaaah

That's the upper bracket of wealth in the country. As earlier news says most Americans have less than $1,000 in savings, some don't even have $500.00 for an emergency situation saved up.

The Silent Generation and into the early Baby Boomers are hoarding not only money, but working well beyond retirement. Younger Baby Boomers seem to be affected similarly to the younger generations.

a reply to: seasonal

I doubt house prices will come down any time soon because the "builders" are only building spec housing, not tract type housing because of the difficulty borrowers have in getting mortgage loans. But for the very, very wealthy, urban/suburban/exurban house buying has become a disastrous affair. And they aren't any longer building "starter" homes because there's insufficient profit in them and because lenders won't make mortgages against affordable houses because those are the most frequently defaulted on by the borrower when the economy turns south.

The situation in Cali is, from what I read, horrible and they now count as "homeless" people living in old motorhomes on the outskirts of their cities; places where people like plumbers and electricians live while they work in SF or LA, but where they can't afford to rent an apartment.

a reply to: dreamingawake

Seems that a number of people can't afford to retire.

But the baby boomers who have had arguably the best job prospects of any generation with the best pay and benefits should be able to retire. Sad state of affairs if even the boomers can't retire.

a reply to: underwerks

And that day will likely come when some genius or a collection thereof figures out how to hack into the banks and make all those zeros that are what's actually in the accounts disappear into an offshore bank. And that prompts an interesting thought.........how do the banks stay solvent when that happens?

Americans are hoarding saving money in checking accounts

There, fixed it for ya.

Wow, so now "saving" money is being negatively connoted as "hoarding" money?

What world did I wake up in?

originally posted by: Liquesence

Americans are hoarding saving money in checking accounts

Wow, so now "saving" money is being negatively connoted as "hoarding" money?

Apparently, unless you are a millionaire or billionaire; then they are business savvy. Let those that have excess do the spending, I'll keep my money over buying cheap crap in some feigned effort to keep up with the Jonses.

a reply to: seasonal

I'm wondering at some facts that are just not - factual.

More and more people are getting ready for the 'big one' in increasing numbers and I don't see those people keeping their money in the bank.

Personally none of my friends or family do. Just enough to cover the bills paid on-line and that's that.

Hmmm...

originally posted by: Liquesence

Americans are hoarding saving money in checking accounts

There, fixed it for ya.

Wow, so now "saving" money is being negatively connoted as "hoarding" money?

What world did I wake up in?

The world of consumerism. If you ain't spending it they (corps) are not getting it. Unfair if you ask them (corps).