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Well I think there are two potential pressures here:

One is a decline in "retail saving" due to concentration of wealth in the hands of those who don't do much "retail saving." Another aspect might also be the growth of alternative investment options for the middle class also.

Alternatively, all we know is that they don't have the deposits to back the loans they make. But that could be because they have worked hard to make many more loans than before?

I'll try to dig out some figures on "retail deposits."

by Metatone (metatone [a|t] gmail (dot) com) on Wed Jan 16th, 2008 at 07:19:44 PM EST
I wonder how interested some of these institutions really are in retail saving business. Though the cost of the money itself is lower, the banks have to bear the expenses for branches and <gasp> people to run them - elements that seem to be irreconcilable with modern business plans.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman
by dvx (dvx.clt št gmail dotcom) on Sat Jan 19th, 2008 at 02:02:51 PM EST
[ Parent ]
Quite so.

"The future is already here -- it's just not very evenly distributed" William Gibson
by ChrisCook (cojockathotmaildotcom) on Sat Jan 19th, 2008 at 02:39:34 PM EST
[ Parent ]

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