I'm talking about the total amount held in banks by Americans.
This amount is falling.
And that's quite logical. For what ?
Because there are fewer loans granted, in particular by the regional banks which are suffering.
Thus, the credit you take out, for example, to buy your car or your house, is a deposit for the one you pay.
Less credits = less deposits.
I buy your house with money that I don't have and I borrow, but when I buy your house, I give you the money right away, even if it takes me 20 years to pay it off. the bank !
Less credits = less deposits.
It also works with the car you are going to resell, or of course with the machine supplier for a company that will buy its new machines on credit and the manufacturer will collect the amount immediately.
Credit makes deposits in large part.