warriorsworld.net | Golden State Warriors Forum: Artificially low interest rates serve as an fundamental impediment to lending.

[ Thread ] [ Post Followup ] [ Search Forums ] [ Politics ]

Artificially low interest rates serve as an fundamental impediment to lending.
User account number (aid): 11340
Posted by Dick Nikon on 2012-06-27 16:29:35

In Reply to: There is uncertainty though posted by Max on 2012-06-27 15:36:53

No bank wants to lend at these rates because of the opportunity cost when rates inevitably return to normal. The purpose of the exceptionally low rates is to allow banks to recapitalize and recover their losses by paying America's savers absolutely nothing on their deposit accounts.

Thread:

politics, not economics - DC Warrior 2012-06-27 06:44:44 (40 views)

There is uncertainty though - Max 2012-06-27 15:36:53 (49 views)

well the lender I work with are concerned about cash flow - DC Warrior 2012-06-28 06:10:28 (26 views)

Artificially low interest rates serve as an fundamental impediment to lending. - Dick Nikon 2012-06-27 16:29:35 (50 views)

that's wrong. The banks base their lending on a spread over a margin - DC Warrior 2012-06-28 06:13:37 (27 views)

Sounds right to me. Amazing that after T.A.R.P. etc. there is still this quasi-tax on the economy - Max 2012-06-27 19:29:29 (33 views)

it's not a tax, it's a subsidy. It is juicing up the economy - DC Warrior 2012-06-28 06:14:51 (30 views)

By assuring low rates till the end of 2014, they are sending the message - Dick Nikon 2012-06-28 00:08:24 (31 views)

You must be registered and logged in to post. Please select an option:

[ Thread ] [ Post Followup ] [ Search Forums ] [ Politics ]