4 ms·
This is especially infuriating: "Banks that take advances from their FHLBs, that is most banks, do so in lieu of paying higher interest rates to their own custo
by miguelazo 4y ago
This is especially infuriating:
"Banks that take advances from their FHLBs, that is most banks, do so in lieu of paying higher interest rates to their own customers. You’ve probably asked, “How can banks get away with paying on average 0.19 percent on savings accounts when the yield on 1-year treasuries is 4.75 percent?” The answer lies largely with the FHLBs."
I wonder how much of this very low cost credit finds its way into housing speculation-- the antithesis of building affordable housing.
- sokoloff 4y agoThese subsidies on home mortgages affect owner occupants and leased properties in similar ways. The affordability problem has to be looked at with at least one eye on the competition among marginal buyers, whether prospective owner-occupants or landlords. If a prospective owner-occupant has less financial resources than the typical “competition” for a given type of house, they’re going to get outbid in a supply-constrained market, whether mortgages are 3%, 13%, or 23%.