Where’s the dough?

The Market Beat column in the WSJ 3/31/09 noted that U.S. Banks traditionally carry about $300B in cash. As of March 18th, they had $976B, more than triple the usual level. The M2 money supply – checking deposits, savings accounts other than IRA saving accounts, money market funds – are up 10% this year.

Americans are saving. The banks just aren’t lending out those deposits as quickly as they are received.