Non-Borrowed Reserves of Depository Institutions

[bushido_aria]

Greetings!

I found this graph on a screen capture from Jordan Maxwell's site. I then hunted down the original site. I'm not a financial expert by any stretch of the imagination (I tend to function slightly higher than "Insert ATM card. Money comes out." but not by much). If I understand this graph correctly, then the banks not only don't have the liquidity of cash flow, but their true reserves, the ones they don't have to borrow from the Fed, and crashing hardcore?

Anyhow, here's the graph from the St. Louis Federal Reserve Bank website (covers from 1958 until now):

http://research.stlouisfed.org/fred2/series/BOGNONBR?cid=123

Here's the graph again for the past 5 years:

http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&s[1][id]=BOGNONBR&s[1][range]=5yrs

It looks like either people have been grabbing their deposits since the beginning of 2008, or the banks started to dump their reserves at the beginning of this year. Can any one with more knowledge of what I'm looking at comment on this? Thanks!

[open your eyes]

i'm in the same boat, I just know it doesn't look good. Is it an indication that people are not saving / keeping their money in the bank? Also, is this why the banks aren't lending to each other, cuz they know the reserves may not be there?

[bushido_aria]

Again, I'm no expert, so please if you know, pipe in. My guess is not that people were pulling their savings. I think this is evidence that since January the banks had pulled their assets out of their vaults and put them elsewhere. Somewhere there's a little lifeboat for this bastards. Think of all the interviews with Bob Chapman where these guys were putting themselves at greater risk left and right concerning gold futures and such. He even said that made no sense for someone in the market. The only way they were doing that is if they were guaranteed no loss. Either way, the graph doesn't look like banks have dancing ponies and rainbows in store for us.