Money Hikes Rates Created by m.moebs on 7/16/2023 9:04:25 AM
Often what is apparent is not. The Price of Money is like this.
This article reports how money is driving the price of interest rates, not vice versa.
Your comments are always welcomed whether positive, negative, or indifferent.
Reducing Inflation Works by Reducing Money & Increasing Rates
“It’s not the rate but the money, stupid,” recent comment by investment manager on business TV show. Michael Moebs, Economist & Chair of Moebs $ervices, LLC (M$) a Financial Service Research Firm.
Lake Forest IL (July 16, 2023 As the Fed sells more securities it depletes deposits; evidence is a net deposit change reduction of ($420 Billion) by yearend, 3/31/23. As a result of the banking crisis, savers to investors are seeking higher rates. Money Market Mutual Funds (MMMF) offer the highest rates thus reducing deposits at banks, credit unions, thrifts, and fintechs. With less money available due to Fed sales, bond market yields have soared, driving down the value of financial institution (FI) investments and thus shrinking survival equity. The bottom line is FIs cannot gather sufficient deposits without curtailing lending. READ FULL ARTICLE