Mohacsy's Safe Portfolio Member Forum

[jbsliverer]

BlackRock Temp Cash TMCXX is paying 4.66% at Merrill
Fidelity Government Money Market is paying 4.22%

That's a strong incentive to stop spending into inflation and save temporarily.

Just the inflation-stopper the Fed is looking for.

How is the local regional or credit union compete with that?

Maybe this is the stage of game with the weaker banks are taken out or over by the stronger banks and just subsidiaries with different names creating illusions of competition and choices.

Not only the saving vs spending will have that effect, the credit tightening might have more effect.

Small, Medium Banks Account For
50% Of C&I Lending
45% Of Consumer Lending
80% Of All Commercial Real Estate Lending

If regional banks keep bleeding deposits, even it is slow enough that they don't fail, it will lead to a credit contraction for these sectors. That will hurt.


Another interesting note;

The red lines show periods when the Fed finished hiking and eventually started cutting rates.