On: US banks lost $472B in deposits in the Q1 2023

[s1artibartfast]

The US treasury sold ~$1 Trillion in IOUs to private individuals in Q1. While Individuals trade back and forth, this represents a net outflow.

https://home.treasury.gov/news/press-releases/jy1231

[fuoqi → s1artibartfast]

The treasure would've sold them regardless of your investment into a MMF, just for a slightly higher price. So counterintuitively enough, by investing into a MMF your actually reduce amount of deposits lost by banks.

[s1artibartfast → fuoqi]

A bank buying investments assets doesnt change the reported deposits. It isn't the net sum of (customer account balance - investments the bank makes/purchases). Deposits are just the first.