Mike Wilson: Not All Bank Reserves Are Created Equal

This podcast episode, hosted by Mike Wilson, explores concerns over banking system stability, the recent uptick in bank reserves, and its implications for the stock market. While major indices have shown resilience, Wilson cautions against interpreting the rise in bank reserves as QE, arguing that only a portion of these reserves are actually contributing to true money growth. He emphasizes the importance of considering velocity of money, which has been falling due to declining banking system liabilities, and suggests that this trend, along with a narrower market rally, could indicate pressure on economic and earnings growth.