3 ms·
If banks are mostly investing in things that are riskier (and so higher-return) than Fed deposits, they should be able to pay interest that is higher than the r
by akrymski 4y ago
If banks are mostly investing in things that are riskier (and so higher-return) than Fed deposits, they should be able to pay interest that is higher than the rate on Fed deposits.
But in reality you get the reverse, as what the Fed is doing is basically paying bankers. If people could park money at the Fed the way they put cash in a vault, they'd probably pay a fee for the privilege!
- JumpinJack_Cash 4y ago> > If banks are mostly investing in things that are riskier (and so higher-return) than Fed deposits, they should be able to pay interest that is higher than the rate on Fed deposits. Comical. That spread is for shareholders not for peasants. (As he adjusts the monocole)