In the old days, banks borrowed money from individuals at a low rate and then re-lent it to other individuals (mostly through mortgages and business loans) at a higher rate, and made money on "the spread".
NOW, banks borrow unlimited money from the Fed at next to zero cost, so they don't need to borrow from anyone else. They can re-invest the money by buying bonds back from the government at 3% interest, thus locking in nearly 3% profit on an astronomical amount of money, so they don't have to lend any money to anyone but the government. So our government is doing what is called "kiting" checks, where you borrow money from one bank, and then pay it back with a loan from another bank, and on and on, never actually re-paying anyone. Anyone see where this is bound to end up? Bruce On Thu, Aug 4, 2011 at 4:28 PM, Kirby McDaniel <[email protected]> wrote: > > http://www.reuters.com/article/2011/08/04/us-usa-banks-bny-idUSTRE7735JW20110804?feedType=nl&feedName=usdai > > I thought banks were supposed be glad to get your DEPOSITS! > > > Kirby > > Kirby McDaniel > www.movieart.net > > Visit the MoPo Mailing List Web Site at www.filmfan.com > ___________________________________________________________________ > How to UNSUBSCRIBE from the MoPo Mailing List > > Send a message addressed to: [email protected] > In the BODY of your message type: SIGNOFF MOPO-L > > The author of this message is solely responsible for its content. > -- Bruce Hershenson and the other 29 members of the eMoviePoster.com team P.O. Box 874 West Plains, MO 65775 Phone: 417-256-9616 (hours: Mon-Fri 9 to 5 except from 12 to 1 when we take lunch) our site <http://www.emovieposter.com/> our auctions <http://www.emovieposter.com/agallery/all.html> Visit the MoPo Mailing List Web Site at www.filmfan.com ___________________________________________________________________ How to UNSUBSCRIBE from the MoPo Mailing List Send a message addressed to: [email protected] In the BODY of your message type: SIGNOFF MOPO-L The author of this message is solely responsible for its content.
