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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bart13 who wrote (76529)	12/24/2006 10:58:02 AM
From: Real Man	Read Replies (1) \| Respond to of 110194

Many checking accounts are now paying no interest, while banking fees are sharply higher. At the same time, you now get up to 5% just for spending on a credit card. This is WAY upside-down, IMHO. Consumers are not dumb. Who would want to keep money on a checking account? I sure don't.

To: bart13 who wrote (76529)	12/24/2006 10:20:04 PM
From: regli	Read Replies (1) \| Respond to of 110194

Thanks Bart. Here is an updated chart showing CPI adjusted deposits and per capita deposits. Though I agree with a changed banking environment, the fact remains that most would prefer to cover their current expenses from checking accounts. The fact that real balances appear significantly lower than in prior years seems to me to be a perfect reflection of how cash strapped the consumer really is. Given the low balances per capita, I am not surprised that many are paying their day to day bills using credit cards.