Cycle Trading

[No-Quarter]

Tick Tock...

https://www.zerohedge.com/markets/us-banks-see-large-deposit-inflows-bailout-fund-expires-rrp-liquidity-plunges

And finally, as if you needed a reminder after the recent NYCB debacle-and-bailout - the regional bank crisis is still very much alive as evidenced by the red line below (without The Fed's expired BTFP facility)...

As one veteran Fed watcher remarked "this is such a clusterfuck... deposits should be $500BN lower"

The bottom line is - this looks a lot like a 'Small Bank' crisis. The last time this happened, the crisis sparked a sudden $300BN 'run' in small bank deposits (this time it's bigger!).

Is The Fed 'hoping' for a controlled bank-run this time - so as many small bank deposits are drained voluntarily, before they are drained all at once in a panic (and the Reverse Repo facility is empty, unable to provide any cushion)?

GLTY