Money market accounts are still bank accounts, they just pay higher interest. So banks still have the money, they're just paying mote for it.
This isn't going to make banks insolvent, it's just going to pinch margins because the cost if funds are going up. It's a profitability issue not a liquidity issue.
dayby_day t1_jef1ebo wrote
Reply to comment by Celtic_Legend in "No REALLY, we're doing fine" ~ every bank right now by JPowsSecretlover
Money market accounts are still bank accounts, they just pay higher interest. So banks still have the money, they're just paying mote for it.
This isn't going to make banks insolvent, it's just going to pinch margins because the cost if funds are going up. It's a profitability issue not a liquidity issue.