Money Flow (M2, Savings, Debt)

This chart provides a comprehensive glance at several key economic indicators and their interplay:

• Personal Saving: This reflects the amount of disposable income that households and non-profit organizations are saving rather than spending.

• Real M2 Money Stock: M2 includes assets that are slightly less liquid than those in M1 (such as savings deposits), adjusted for inflation.

• Wilshire 5000 Total Market Full Cap Index: This index represents the broad stock market, tracking the total market capitalization of all U.S. equity securities.

• Federal Debt: Total Public Debt: This indicates the total amount of debt owed by the federal government.

Potential Interpretations:

• Positive Scenario: If personal savings and Real M2 are increasing alongside a rising stock market index, it could suggest healthy economic conditions and consumer confidence. Stable or declining federal debt would be a bonus.

• Negative Scenario: Declining personal savings and Real M2, coupled with a falling stock market and growing federal debt, could signal economic stress or an impending downturn.

Deposit-to-Liability Ratio and Security Holdings vs Federal Debt

This chart provides insights into the banking sector and its connection to federal debt:

• Deposit-to-Liability Ratios for Small and Large Domestically Chartered Commercial Banks: These metrics gauge the financial health of banks, indicating the proportion of their liabilities that are covered by deposits.

• Mortgage-Backed Securities (MBS) held by All Commercial Banks: MBS are securities that represent an ownership interest in mortgage loans. They're a significant part of many banks' investment portfolios.

• Federal Debt: Total Public Debt: This measures the total amount of debt owed by the federal government.

Potential Interpretations:

• Positive Scenario: Rising deposit-to-liability ratios suggest banks are in good financial health. An increase in MBS holdings may suggest confidence in the housing market, especially if federal debt is stable or declining.

• Negative Scenario: If deposit-to-liability ratios are falling, it might signal that banks are becoming more leveraged or experiencing withdrawals. Declining MBS holdings might suggest concerns about the housing market. Rising federal debt could also be a concern, depending on other economic factors.