American Bank Deposits Hit Record High

published on July 2, 2020

a new figures just out show that bank

deposits have hit record highs and I

mean record highs in April alone

deposits grew by over eight hundred

billion dollars more than the previous

year Lee record two trillion has been

deposited since the pandemic began our

next guest Joseph Trevisani told me

off-camera that deposits from core

deposits are from corporations

businesses and individuals so despite

record unemployment levels the

government is supporting people through

stimulus checks and enhanced

unemployment benefits so and for

businesses the Federal Reserve has

embarked on an unprecedented bond buying

program to ensure businesses have enough

money to survive in a short run so

joining us to discuss the mega saving

phenomenon is Joseph Trevisani senior

financial analyst at FX Street

Joseph thanks for coming on my pleasure

nice to be here it's great and first of

all how much of this saving do you

credit to the Fed and the Treasury

programs and do you think businesses and

individuals would have been saving

anyway considering the uncertainty I

think there would I think if you

remember back to the panic in March

corporations were trying to amass cash

and assets to defend against what they

anticipated would be a collapse in

revenues and they were correct about

that spending nosedive retail sales all

of the things that go to keep the cash

flow in a corporation running

practically disappeared so they were and

they continued to have of course fixed

costs they have employment cost they

have rant they have all of the things

that go into running corporation so the

largest amount I think of that run-up in

savings was probably corporations being

defensive for the next few months about

what could happen because of the

pandemic shutdowns and I don't know what

percentage of that you think would have

been you know these companies taking

their day they kind of assets the cash

assets they would have had and becoming

more defensive versus these big programs

that we saw the people doing and for the

percent

that was the treasurer and fed programs

do you think these bodies were hoping

that the money might have circulated a

little bit faster I think they probably

were I mean you know the Fed buying

program bond buying program is primarily

designed to keep rates lower and to drop

rates down you before the pandemic

started you have the ten year at one

point six that's now down around 0727

one and the same kind of decline in the

two year rate so what they want to do is

keep the market rates lower that's the

purpose behind the Treasury the Treasury

events but the other events that are

coming from consumers need well right

there you have a problem because the

consumers are we're not able to spend

for several weeks actually a couple of

months so that actually impacted them

much more some of that I think probably

went to savings but that will come back

as the lock downs in which they are now

and I remember we spoke a little bit a

couple of weeks ago now on consumer

sentiment and I asked you back then did

you feel did you get any signals from

the market or the economy whether

consumer sentiment do you think will

come back or anything anything new on

that side I think it will I mean if you

look at the May retail sales they were

expected to be better of course because

they collapsed to record levels in April

but that collapsing record levels in

April one of the reasons maybe the main

reason is because everything was closed

you can't buy a car if all the car

dealerships are closed so people didn't

spend the amount that was expected to

come back by analysts estimates was

about half of the collapse in April in

May but in fact it equaled in every case

more than the collapse that when it went

through in April so I think that's one

sign that people are willing to spend

and they very much want to resort on my

life there are two ways of dividing that

up though one is they're certainly going

to be a large amount of deferred

spending from March and April that came

back in May that doesn't necessary

means that people will continue to spend

at normal levels going forward into June

and July and August but that I think is

more important than that bursts of

spending that we saw in men if you get a

reasonable figure for retail spending in

June then I think you know that

sentiment has recovered and that

consumers look upon this event as

traumatic as it was as a one-time event

as something that has starting and an

endpoint even if the endpoint is a

little diffuse okay that's great yeah I

think we're all here keeping a keen eye

in the consumer sentiment Joseph thanks

very much for joining us we'll catch you

again soon my pleasure thank you for

having me

Related Videos

I believe and i think there's good enough data to say that aerosol transmission does occur so by aerosol make sure you know what we're talking about gen...
Holding a one-man demonstration about climate change in the middle of moscow might sound like a thankless task but arshak makitiyan has taken up the challenge t...
u.s democratic presidential candidate joe biden issued a warning for the united kingdom that any future trade deal between the two countries was dependent on u...
sharon if you had to describe the multi-generational workforce in one word what would it be and why power the more diversity you bring within an organization a...
Oracle has beat out rival bitter microsoft to take over the u.s operations of tick tock the popular video app that's according to sources familiar with the ...
And action it's a very historical moment and i'm very excited to be the first israeli model Shoots for an israeli brand here and i think it's gon...
Boeing has warned of a delay in deliveries of its 787 dreamliner as the plane maker found another production issue with its jet the third such flaw to appear ov...
I John Fitzgerald Kennedy do solemnly swear that you will faithfully execute The office o...
General motors is acquiring an 11 stake in electric truck maker nikola in a deal worth about two billion dollars the companies will join forces to build an elec...
Grab your phone i'd love to be our next big winner and here's how young is the second for your chance to win the car and the cash text win for six two f...
Tens of thousands of people across pakistan protested against french magazine charlie hebdo reprinting cartoons that mock the prophet muhammed the cartoons were...
I welcome everyone everyone I hope he's safe and he's staying at home and taking care of themselves and along with the family now we're gonna discus...
i survived this push them away i pushed them away and i helped my friends and i called home and my sister Answered so it was like i'm dying please send my...
so uh well i think this is the part of the freedom that Bread is allowing for the viewer to have so he juxtaposes many opposites and you have to find your wa...
Basketball legend michael jordan is taking an equity stake in draftkings and joining the board of the fantasy sports and gambling company the six-time nba champ...
investors drove the s p 500 and nasdaq to new highs tuesday apple and zoom led the rally the nasdaq shot up 1.4 the dow and s p gained three-quarters percent D...
Viola's drive for trash dominance is worth the money the french water and waste company is finally pouncing on arch rival swears it has offered 50.5 euros a...
Warren buffett is going big in japan the question is why america's most famous investor and the chairman of berkshire hathaway said on monday that he's ...
In the early days of world war ii franklin roosevelt told the country and i quote the news is going to get worse and worse before it gets better and better and ...
Today we commemorate the march on washington to jobs and freedom in 1963 where my father declared his dream but we must never forget the american nightmare of r...
Be the first to comment “American Bank Deposits Hit Record High”

Your email address will not be published.

There are no comments yet.