3 ms·
Firstly, you're a factor 10 off: 10.8B is 2% of 540 billion. Secondly, 3% already reduces that to 360 billion. Thirdly, you missed the important word 'leverage'
by Confusion 17y ago
Firstly, you're a factor 10 off: 10.8B is 2% of 540 billion. Secondly, 3% already reduces that to 360 billion. Thirdly, you missed the important word 'leverage' in the article.
- rebelvc 17y agoYea I did get the factor off. Leverage means using borrowed money to make more money. Other than the government where are you going to borrow at less than 2% interest rate? The financial institution does a lot more than buying t-bills.