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Banks don't need funding to supply mortgages. Or, more accurately, they need only 10% funding and that has never been a bottleneck before. It isn't the reason m
by kcatskcolbdi 5y ago
Banks don't need funding to supply mortgages. Or, more accurately, they need only 10% funding and that has never been a bottleneck before. It isn't the reason mortgage prices are rising.
- marton78 5y agoThere is no bottleneck, the opposite is true! Banks need only 10% funding, yes, which means for a one million deposit they can create 9 million in debt, thereby reducing the cost of money, thereby inflating asset prices.