Saturday, 8 November 2014

On This Measure, U.S. Depository Institutions are Substantially Less Solid than....

....they were on 10 September 2008, just a few days before Lehman collapsed. Back then, this ratio was 21.7%. Today, the ratio has declined to 15.6%. 

When reading the chart, remember that the money supply is a liability for depository institutions (the majority of the money supply is deposited with commercial banks).