Saturday, 6 August 2011

Gross Says Banks Charging to Hold Cash ‘Unheard of’: Tom Keene

http://www.bloomberg.com/news/2011-08-05/gross-says-u-s-banks-charging-fees-to-hold-cash-unheard-of-tom-keene.html

BNY Mellon said yesterday it will charge clients with more than $50 million 13 basis points, or 0.13 percentage point, for “excess amounts” of cash they deposit with the bank. Custody banks like BNY Mellon have been flooded with cash as the European debt crisis, the debate over the U.S. debt ceiling and the stock market selloff prompted institutions to seek the safety of insured bank accounts.


SAMEER SAYS


PEOPLE ARE PAYING BNY TO HOLD THEIR CASH


THIS MEANS THEY ARE SHOT SCARED OF LOSING MONEY


THEY WANT CAPITAL PRESERVATION


WOW!!!!!


HOW CAN ANYBODY NOT SEE THE DEFLATIONARY IMPACT OF THIS MOVE


THIS IS A CLEAR SIGN TO ME - THAT WE ARE ABOUT TO WITNESS A LOT OF STRESS IN THE MKTS GOING FWD 


I THINK MKTS HAVE MORE OF LESS PEAKED


WE WILL SEE ALL MKTS FALL IN SYNC


THAT INCLUDES EQTY - CMDTY - METALS - ALL OF THEM INLCDUING NON USD FX


THE ONLY THINNG THAT WILL UP IS 


US DOLLAR


VIX



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