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I don't think your story holds up. Checking accounts pay nowhere near 6% interest. Mine is currently paying 0.10%. Savings accounts are FDIC insured and Regulat
by othermaciej 15y ago
I don't think your story holds up. Checking accounts pay nowhere near 6% interest. Mine is currently paying 0.10%. Savings accounts are FDIC insured and Regulation Q did not forbid them to pay interest, it was just harder to get your money out. I don't think any professional economist believes that interest on demand deposit accounts has ever caused a crisis or been a significant cause of systemic risk. It was an anti-consumer regulation, plain and simple.
- Retric 15y agoIceland is a vary recent example of just what I was talking about. http://online.wsj.com/article/SB123032660060735767.html http://online.wsj.com/article/SB123032660060735767.html For a recent US example just look at savings accounts: http://www.bargaineering.com/articles/historical-online-savings-interest-rate-comparison.html http://www.bargaineering.com/articles/historical-online-savi... 3/05 HSBC 2.75% ING Direct 2.53% 2/06 HSBC 4.80% ING Direct 4.75% And guess what HSBC got bailout money.
- deleted 15y ago[deleted]