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I'm no economist, but with 0% interest rates and nonzero government bond rates banks have been able to do essentially this for years - get money for free, loan
by sjm-lbm 11y ago
I'm no economist, but with 0% interest rates and nonzero government bond rates banks have been able to do essentially this for years - get money for free, loan it to the government, call that a good day's work.
- lintiness 11y agododd frank and various international banking rules have limited the amount of govt bonds a bank can hold on their balance sheet.