10/19/12: Ryan Vice of Sierra Pacific Advisors suggested this metric: Bank Cash Assets as a percentage of Money Supply. As we’ve gone through the two quantitative easings recently, money supply has grown and so have banks cash assets. A high ratio means that banks are not able to lend all the money they are receiving from the QE’s. It takes a while for them to put the money to work. Given the long history of the metric, not clear what low on this metric will be.
See the full report on Data360 here. (TMP)