Bank stocks soared this week (along with everything else) despite another jump to a new record high for bank's usage of The Fed's emergency funding facility, and the massive deposit run the prior week.

Probably better not to show Bill Gross this chart...

So, what fun and games will The Fed do this week to 'adjust' the data so we don't panic about a sudden bank run?

On a seasonally-adjusted basis, total bank deposits rose by $52.2BN...

Source: Bloomberg

However, total bank deposits - unadjusted - fell by $22.3BN to its lowest since June...

Source: Bloomberg

And just when we thought some sens of reality was kicking in, bank deposits and money-market fund assets diverge once again...

Source: Bloomberg

Adjusting for foreign bank deposit flows, The Fed's magical 'adjustment stick' managed to turn $$33BN of outflows (NSA) into $51BN (SA) inflows...

Source: Bloomberg

So, after the prior week's massive outflows, The Fed finds a way to stem the flow with some 'fuckery', leaving the delta between SA and NSA deposit losses sicne SVB now at $168BN

Source: Bloomberg

For context - there has been $146BN in NSA outflows over the last two weeks vs $17BN in SA outflows.

On the other side of the ledger, it was a lending-gasm as Large banks saw loan volumes surge $24.6BN and Small banks loan volumes rose $5.4BN. That is the biggesat jump in lending volumes since mid-March...

Source: Bloomberg

The key warning sign continues to trend ominously lower (Small Banks' reserve constraint), supported above the critical level by The Fed's emergency funds (for now)...

As the green line shows, without The Fed's help, the crisis is back (and large bank cash needs a home - like picking up a small bank from the FDIC).

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