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For banks, this scenario is much more probable than you think. The US treasuries is paying much more than banks can pay, so people just need to move their bank
by coliveira 4y ago
For banks, this scenario is much more probable than you think. The US treasuries is paying much more than banks can pay, so people just need to move their bank balances to treasury bonds and their deposits will go puff!
- xiphias2 4y agoThis is the point when banks are starting offering higher rates themselves to depositors.
- nathanaldensr 4y agoBut the banks themselves have to be able to exceed those returns in order to actually pay out interest to depositors and make money for their shareholders. That's not an easy task in this environment; everyone's chasing safe yield.