Rebirth 79: I opened a bank in the United States

"so much?!"

Is this the so-called Fu Wushuang to this day? !
While Carter was amazed, he couldn't help but sigh secretly.

If there are more than [-] million funds at this time, then
"That's all! However, don't be too happy. Although this year's situation is better than the previous two years, it is still a turbulent year. The money cannot be messed around."

Goodman, who was still excited, even joyful, suddenly sighed again:
"The Fed's benchmark interest rate is still high, and the deposit interest rates of the surrounding peers have no downward trend. Now, we still cannot get rid of the high interest rates on deposits that have been issued in the past. With the current scale of deposits, we need to reserve almost [-] yuan per year only for deposit interest payments. More than [-] US dollars! At present, the annual revenue of various loans cannot actually reach this figure. That is to say, the current black chess looks good on the surface, but in fact, it is still in a state of loss."

"Wait, that's not right! Why do you only need [-] million for [-] million resident deposits?"

"Because of AtS and Now accounts! Interest-paying accounts are now more flexible than before. This is an important reason for the rapid increase in the size of the reserve. Originally, only time deposit accounts would pay interest, but people with little money usually don't It is impossible to save money, because that will cause problems in their lives. And with a little savings, but not a lot of people, look at the interest rate, do the math yourself, and don’t bother.”

"Actually, private capital was huge in the past. It's just that they seldom deposit it in the bank. Now the opening of these two new accounts is equivalent to lowering the deposit threshold. The money is deposited in the bank, because they deposit it, and they don’t worry about having no money.”

"So in this way, the stability of deposits is not as good as before. This means that we need to prepare far more reserves than the Fed stipulates, but it also means that our interest payments will not be so much. In fact, [-] million is It’s a very high estimate, but it’s all about being prepared!”

Raising his hand to catch the head, Carter understood what Goodman meant.

It's like a lot of people who just put their money in a debit card account and don't get much interest all year round.The funds in this account are often in circulation, and the interest payment record algorithm of each bank is not uniform. For example, the amount of interest payable is recorded according to the average monthly deposit amount and the interest is paid according to the minimum deposit amount of the month. The difference will disappear.
After going around and around, Carter estimated that the deposit scale of about [-] million was operated by Goodman's stingy temper and the conservative thinking unique to small businessmen.It is estimated that [-] million can be interest-paying deposits, which is very good
Basically, a balance between savings and loans can be maintained.
But, thinking of this, Carter was depressed again:

How many years has it been, this bank.
"Is there any new announcement from the Fed now? About the inflation rate. Don't tell me, I also feel that the recent price increase has become lower, especially this year."

"Indeed, it has dropped a lot. According to the information released by the Federal Reserve, the current inflation rate has probably dropped to about 7%. The trend of raising interest rates is still going on, and their goal should be to bring inflation below 3.4%. If With the current situation, if we continue without wind and waves, we should be able to do it next year!"

...

Next year 1983.
7% inflation rate.
With these two key words in his mouth carefully, Carter paced forward slowly.

Carter seems to understand the reason why Goodman said that the increase in the scale of residents' deposits is a good thing:
Under normal circumstances, rising household deposits is not a good signal.That usually means that consumers lack confidence in the market and worry that their future income will not be guaranteed, so they increase their savings for a rainy day.

Can.
This is a normal situation, and the situation in the United States for many years was not normal!

从1973年的6.2%开始，到74年的11.1%，75年的9.1%，76年5.7%一直到1981年10.3%
After nearly ten years of high inflation, only fools dare to deposit money in the bank!
卡特简单算了一笔账，假设以十块钱为例。1973年10美元就能买到的东西，到了74年就需要花费10.62美元；75年需要11.79美元；76年需要12.87美元；77年需要13.6美元；78年需要14.49到今年时，则需要惊人的21.725美元才能买到1973年时，10美元的东西！
In less than ten years, the purchasing power of the dollar in the United States has more than doubled.In such an exaggerated era of high inflation that lasted for nearly ten years, perhaps in the first two years, some people reacted slowly and felt that the crisis was only temporary.In order to cope with the crisis and improve the ability to resist risks of oneself and the family, if you choose to deposit money in the bank, then nine years will come.
Perhaps there is only broken cans broken, this is the most accurate description, right? !

Under the crazy currency depreciation, no matter how unresponsive people are, they should be able to understand: it is better to use it to buy flour than depositing money in the bank. Well, real flour, the kind that can be eaten
Anyway, the flour can last for a long time!
Therefore, the current situation of Douglas is completely opposite to the normal situation.Here, the increase in the scale of residents' deposits is not only a negative signal, but a positive one.

Because people are gradually believing that the market is returning to stability, and the money they deposit in the bank will not go into Audi today, but motorcycles out tomorrow.
It may also be in the first two years, when the crisis was the worst, Douglas kept their rations and their warmth, which gave them confidence and belonging to the city.
So, if we follow this line of thinking, when residents regain their confidence in the market, what might be the next step?
"Consumption!"

Carter spit out a word softly and firmly.Looking at the distance of the farmland, on the Black Avenue next door, construction machinery is roaring.
Little houses scattered scattered on the vast farmland in front of you
"Goodman, did you see this, that's why you said, five years from now, will this place change a lot?"

"That's right! Except for the markets of some small countries with limited productivity but possibly developed tertiary industries, including cities whose development is determined by supply, the development of any large market must be driven by consumption!"

"When someone consumes, someone produces! The more consumption, the more production capacity will be expanded on the supply side, more workers will be hired, and more production equipment will be purchased. The supply side in one industry chain is often the demand side in another industry. And the terminal that connects these industrial chains one after another is the hundreds of millions of consumers in the United States and even in the world!"

"Things that are too far away have nothing to do with us for the time being. But as far as the small city of Douglas is concerned, haven't we just digested more than [-] new residents? In fact, these people have not been completely digested, because their consumption The ability has not recovered yet!"

"When this part of their ability recovers, there will be more restaurants, public transportation, entertainment facilities, education, medical care, etc. in the city. There will be a corresponding increase in all walks of life."

"Don't underestimate this overweight, we still have former residents. Those residents who survived the Great Depression era!"

"They are us, the driving force behind the development of our city!"