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This is the wrong way to think about it. Rates are nearly negative, so 2% is practically 10, 100X the rates banks can earn otherwise. It's basically free money
by jhwang5 6y ago
This is the wrong way to think about it. Rates are nearly negative, so 2% is practically 10, 100X the rates banks can earn otherwise. It's basically free money shoveled into banks, a massive boon.
- bmelton 6y agoGenuinely curious how federal interest rates have any relation whatsoever to fees for service and why they're being correlated here. An uncharitable reading might assume a spurious correlation.
- _curious_ 6y ago"It's basically free money shoveled into banks, a massive boon." A wall street bailout disguised as a main street bailout.
- imtringued 6y agoBank fees are added on top of the market rate. If the rate is -1% and the bank demands a 2% fee then you will have a 1% interest rate.