The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
The Daily Hodl
No Result
View All Result

Probability That US Banks Will Restrict Cash Withdrawals Is ‘Rising Like Mercury’, Says Macro Guru Hugh Hendry

by Henry Kanapi
May 20, 2023
in Futuremash

Macro guru Hugh Hendry is expanding his views on the US banking system amid lingering turmoil in the financial sector.

In a new interview on Stansberry Research with Daniela Cambone, the hedge fund manager says the Fed’s tight monetary policy has increased the probability that banking customers could one day face restrictions on the amount of cash they can pull out.

“If we went back a year ago, the probability you would assign to that would be almost zero. And all I’m saying is that probability, like mercury, is rising.

Why is it rising? It’s rising because we have experienced, I call it the Fed folly. One can say factually that this Fed hiking is the fastest and of the greatest magnitude. They’ve never done this before…

We no longer live in an environment where it seems prudent to have all of your money in the banking system, and certainly not congregated around one lender.”

Although blanket limits on bank withdrawals are unknown in the US, such restrictions were implemented in Greece and Cyprus during the debt crisis of the mid-2010s.

Cash withdrawal limits are currently in place in Nigeria, where individuals are allowed to withdraw 20,000 naira, worth about $43 dollars, per week. Leaders in the economically-troubled nation say the move is designed to pull cash out of the system ahead of a planned move to a fully digital economy.

Hendry says America’s banking industry will likely witness further deposit flight as we now live in a world where a customer can pull out their funds with a press of a button.

He also points out that the Fed’s rate hikes over the past year have created an environment that makes it attractive for depositors to take their money out of banks and invest it in money market funds.

A combination of being stuck with these very uncompetitive rates and now the tyranny that money can just fly so quickly… The thing that’s pulling money out is the Fed’s offering too much via money markets. I mean you could go to the Fed directly.

So what’s the Fed doing? It’s encouraging more and more and more money to leave [banks].”

At time of writing, the average annual percentage yield (APY) for savings accounts stands at 0.25%. Meanwhile, money market funds offer as high as 4.75% APY, closer to the Federal Reserve’s 5% to 5.25% benchmark rate.

I 

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Submit a Press Release

Industry Announcements

  • Binance Labs and BNB Chain Open New Founder-Focused Track To Incubate 100 Early-Stage Projects
    November 24, 2023
  • Socrates Launches Groundbreaking Social Media and Entertainment Platform for Web 3.0 Users Globally
    November 23, 2023
  • GCEX Receives Operational VASP License From Dubai’s Virtual Assets Regulatory Authority
    November 22, 2023
  • Yubo Ruan – Revolutionizing Web 3.0 With a Web 3.0 Super-App
    November 22, 2023
  • De.Fi Sold Out $5 Million Round, OKX, Binance and Coinbase Directors Among Investors – The Sale Is Still Open
    November 20, 2023
  • Sleek, the Web 3.0 Social Network, Raises $5 Million To Power the Ownership Economy
    November 17, 2023
  • Nocturne Launches on Mainnet To Bring Private Accounts to Ethereum
    November 15, 2023
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$37,235.98
$37,235.98
0.7%
Ethereum
$2,026.28
$2,026.28
0.13%
Cardano
$0.376857
$0.376857
0.98%
XRP
$0.605606
$0.605606
0.17%
Dogecoin
$0.077882
$0.077882
1.4%

Spotlight

  • Bloomberg Analyst Says Crypto at the Start of Upswing Which Will Last ‘Many Years’ – Here’s Why
    November 21, 2023
  • Macro Indicators Suggesting Bitcoin Rallies Just Getting Started, According to Ex-Goldman Sachs Executive
    November 21, 2023
  • Billionaire Ray Dalio Warns US at Inflection Point Where Enormous Debt Could Witness Acceleration – Here’s Why
    November 21, 2023
  • Crypto Analyst Calls for Ethereum To Massively Underperform Against Bitcoin, Says Now Is Not the Time for ETH
    November 21, 2023
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Altcoins • Futuremash • Financeflux •
Blockchain • Regulators • Scams •
HodlX • Press Releases

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON X

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2023 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise

© 2023 The Daily Hodl