Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

Latest Breaking News

staggerleem

(469 posts)

5. I'm afraid you've got it backwards.

Reply to lark (Reply #3)

Thu Sep 17, 2015, 05:34 PM

Sep 2015

The banks are VERY HAPPY being able to borrow at near-0 rates, because they can take the cash they borrowed at 0.25%, and invest it in ANYTHING - even T-bills, which currently earn around 1%, give them a .75% profit, essentially risk free. Heck - it's FREE MONEY for them!

When money is freely available like this, and taxes are as low as they've been for the big earners, businesses DO NOT RE-INVEST! The executives just pay themselves better.

The banksters FEAR a rate rise - then they might actually have to WORK to make money!

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

5 replies

= new reply since forum marked as read

Highlight:

Federal Reserve leaves US interest rates unchanged - live updates [View all] brooklynite Sep 2015 OP

Just got 3 breaking news banners from U.S. media BumRushDaShow Sep 2015 #1

This sounds like a scam to me saturnsring Sep 2015 #2

Thank goddess for this!! lark Sep 2015 #3

I'm afraid you've got it backwards. staggerleem Sep 2015 #5

With Oil at $48 and in a Glut bucolic_frolic Sep 2015 #4