I can’t wait to hear Turmeric the Terrible crow about a rise in interest rates.
And then immediately turn around and trash Yellen, bragging that he could fire her at any time.
I like this news. I’ve been waiting and waiting for them to raise the rates so that the money I have in savings could earn a little money.
I have not seen any incentive for lenders to lend money at 1/2 %. I think it discourages lenders, even though it makes more people consider borrowing. Why should lenders lend money out that they are barely making anything on?
Hope you have your money in a credit union. They are, hands down, the best.
No - and I don’t have much left either, after '08. I just still have a couple of CDs.
I think this is a minor mistake, but reversible if needed. There are no signs of an overheating economy, so why apply the brakes? Good for banks, bad for consumers.
Do banks turn away borrowers because the bank isn’t making enough? I did not know this was a thing that happened. They add their 2-3% (for prime borrowers) to the fed rate and are always making that margin. Even more for sub-prime borrowers. Are banks better off just sitting on the cash, somehow?
I confess to not researching this idea, so maybe banks are getting out of the lending business (or sitting on the sideline) with the low rates of the last 8 years? Are you suggesting that, with higher rates, banks will now take on more (presumably riskier) loans? I say “presumably riskier” because I just got a mortgage within the last 60 days and there were many dozens of choices of lender. I’m a pretty low-risk borrower, though; maybe it’s very difficult for sub-prime borrowers to find lenders and higher rates will help with that.
The banks have been sitting on piles of cash since 2008. That was one reason I always thought the recovery was so slow - they weren’t releasing money into the marketplace.
I was going to buy CDs but the simple interest I earn from my Credit Union is over treble and it doesn’t tie up the money or have to mature, etc. Go figure.