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When banks give loans to consumers in the form of credit cards, they charge 25% interest because it is really risky - note the 12.5% default rate mentioned in t
by krschultz 17y ago
When banks give loans to consumers in the form of credit cards, they charge 25% interest because it is really risky - note the 12.5% default rate mentioned in the article.
When consumers gives banks loans in the form of deposits, they get very little interest because it is so safe - with the FDIC around what tiny percent of deposits have been lost to consumers in the last 50 years?