Evidently there is so much cash slushing around the system that banks are charging for the privilege of safety. BNY Mellon announced yesterday that they would charge short term depositors, with assets in excess of 50 million, 13 basis points or .13% for the privilege.
If there is too much cash, and evidently the M2 expansion has exceeded 250 billion in the last 8 weeks, why not loan that cash to every U.S. taxpayer at a rate of 1%? That would amount to 1,860 dollars of purchasing power (2005 taxpayer level) per taxpayer. Maybe the consumer can then jump start this economy after all. Flooding the banks with cash has done nothing substantial to date.