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2bits2many t1_jeebj0r wrote

Reply to comment by grimkhor in "No REALLY, we're doing fine" ~ every bank right now by JPowsSecretlover

Not sure how these 2 charts coexist, maybe you could explain further. The story I've been hearing is that people are figuring out US treasuries pay nearly 5% while savings accounts pay .05%.

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erickssm t1_jeetpi2 wrote

The OPs chart only shows the drawdowns in the data. That chart is designed for shock factor to scare people into thinking that there is something bad happening. The actual data from the FRED site shows the reality. It shows that all of the drawdowns are minuscule in the grand scheme of things. Bank deposits not only have continuously trended higher over time, the current draw down is a fraction of what was moved into deposits over the past couple years.

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grimkhor t1_jeec2qz wrote

The top chart doesn't make any sense at all. It compares yoy (or mom?!) numbers of deposits from peak?!

Here's the still very dramatic yoy deposit numbers with a zoom to make them look more dramatic again.

https://www.ceicdata.com/datapage/charts/ipc_united-states_total-deposits-growth/?type=area&from=2022-03-01&to=2023-02-01&lang=en

So if you now take this chart look where it peaked (probably in 2020 with covid money) and now take the amount of money this change until now represents it would be the posts chart. It's absolutely useless but it is what it is.

Edit:

OPs chart is basically a Frankenstein of the drop top right here and translated to a big number instead of percent:

https://www.ceicdata.com/datapage/charts/ipc_united-states_total-deposits-growth/?type=area&period=5y&lang=en

Not even starting to talk about the headline being about outflows while the chart being about change in deposits.

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thefutureisnotset t1_jeeqy9u wrote

It looks to me like the one given by u/erickssm just shows total bank deposits directly over time, which trends upward with a sharper jump in 2020 reflecting the increased savings during the pandemic with a mild downward trend in 2022.

The one given by OP shows “change in bank deposits from peak” and if the top of the graph is 0 but the actual amount of deposits trends up, that must mean it’s dynamically considering the peak as it updates over time rather than the peak considering the entire data set. So even though this chart shows 0 from 2020 to 2022, what’s really going on is the peak is sharply rising, so then the sharp downfall looks way more dramatic because the way the graph is structured strongly emphasizes decreasing deposits while abstracting increasing deposits.

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