As vol­umes this year in stock mar­kets remain sig­nif­i­cantly below last year's but high yield bond ETF inflows reach record highs, TrimTabs offers some con­text for the mas­sive rel­a­tive flows of real cash into check­ing and sav­ings accounts ver­sus stock and bond mutual fund and ETFs. Not-Charles-Biderman, oth­er­wise known as David Santschi of the now-infamous Bay Area back­drop, explains the incred­i­ble sta­tis­tic that in the first 11 months of last year investors poured more than eight times more money into check­ing and sav­ings accounts than into Fed-inspired risk assets in gen­eral. Even with rates ultra-low, the Fed's efforts to drive spec­u­la­tive flows is dwarfed by investors' aggre­gate sense of the real­ity of our ten­u­ous sit­u­a­tion as a mas­sive $889bn was poured care­fully into mat­tresses while a measly $109bn went into risk-worthy assets (includ­ing bonds). As Santschi con­cludes, as long as most investors keep hid­ing most of their money away, the econ­omy is unlikely to get off to the races any­time soon and while we agree from a con­sump­tive demand per­spec­tive, any recov­ery will only be truly sus­tain­able via sav­ings which are being des­per­ately drawn-down by a need to main­tain stan­dards of liv­ing that are per­haps too much to expect.

Source: TrimTabs, via Youtube, Jan­u­ary 12, 2012

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