๐บ๐ธ US net interest and miscellaneous payments on assets by private enterprises $95.2 billion.
๐๐ผ๐๐ฒ๐๐ ๐๐ถ๐ป๐ฐ๐ฒ ๐ค๐ฐ ๐ญ๐ต๐ณ๐ฒ!
Locked in debt at cheap funding rates when the Fed had rates at zero and invested cash to earn higher interest income as the Fed raised rates. pic.twitter.com/Jo94wjhGTV
— Alex Joosten (@joosteninvestor) April 28, 2024
This means that private enterprises in the US made net interest and miscellaneous payments totaling $95.2 billion. The phrase “Lowest since Q4 1976” suggests a significant decline or downturn in these payments, possibly indicating a broader economic trend or financial behavior.
US small bank cash reserves plummeted by $258 billion last week below the level considered a constraint, according to ZeroHedge.
This excludes a $126 billion still sitting at the Fedโs emergency lending program that expired in March.
It marked the largest decline in bankโฆ pic.twitter.com/jbZdRn2TiK
— The Kobeissi Letter (@KobeissiLetter) April 28, 2024
The decrease in US small bank cash reserves and the seizure of Republic First Bank indicate a broader trend of financial instability within the banking sector. This suggests that the decline in net interest and miscellaneous payments by private enterprises could be a consequence of the ongoing regional bank crisis, as businesses may be facing liquidity challenges due to bank failures and reduced access to credit.