A restless night for Shalom...

...this is not the kind of result Bernanke wants to see.   More evidence that the monetary channel of "stimulus" is broken, something I have repeated here for years.  This is a major reason why deflation is should be of primary concern to the U.S. economy, and its interesting to note the policy recommendations and "debates" concerning solvency continue to get first-page treatment from the media and the political class.

But my use of "the political class" should clue you in to why that is, dear reader.

So perhaps he is sleeping very well tonight indeed.

Deposits at U.S. banks exceed loans by an unprecedented $2 trillion as the threat of a slowing economy tempers borrower demand and lenders preserve tightened standards.

Cash deposited at firms from JPMorgan Chase & Co. to Bank of America Corp. expanded 8.7 percent this year to a record $9.17 trillion through Dec. 5, Federal Reserve data show. That outpaced a 3.7 percent gain in loan assets to $7.17 trillion. The gap between what banks take in and lend out has surged since October 2008, the month after Lehman Brothers Holdings Inc. collapsed, when loans exceeded deposits by $205 billion.