FVMAzalea

FVMAzalea t1_jeemcwz wrote

Nah, you do sort of have a point. As those deposits grew in the last few years, banks bought assets (like bonds) with them. Now those assets are worth less (though not worthless) so there can be (and has been) damage from the pace of withdrawals, not just the amount of withdrawals relative to the total.

Not sure if your graph is absolute outflows or net outflows across all banks though. If I withdraw $1M from First Republic and put it into Chase, the net outflow is $0 but the total outflow is $1M.

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