Last week I sent my banker friends an article about the coming funding crunch: loan growth will exceed deposit growth in 2006. I recommended that banks engage in serious efforts to beef up core deposits (deposits that are not expensive, rate-sensitive CDs). Now the Wall Street Journal says "Banks Sweeten Perks for New Depositors." Here’s a link to my article: "Community Bank Challenges in 2006–And How to Overcome Them" .
Business implication if you’re not a bank: it’s a good time to re-shop your banking relationship. In my forthcoming book, Businomics, I have a section about taking advantage of recessions. The principle is that when your vendors are hurting, that’s the time to look for bargains.