Today markets crashed as much as they did in October 2008. The main reasons: contagion from the Euro zone crisis and an overwhelming debt burden.
And there's more bad news: In the last 2 weeks, investors have been stashing hoards of cash at banks like BNY Mellon and JPMorgan -- so much so that BNY Mellon had to slap huge fees on accounts over $50 million.
BNY wrote in a memo today:
"We have noticed certain clients with extraordinarily high deposit levels..." They also mention that they noticed the trend began a month ago -- right before the market went to crap.
It costs BNY Mellon in particular a lot of money to hold the cash because it's harder for it than it is for JPMorgan, for example, to move the money into loans….
Find out more at http://www.businessinsider.com/investors-hoarding-cash-at-banks-2011-8
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