On 6/26/07, Jayson Funke <[EMAIL PROTECTED]> wrote:
So the Fed is favoring Wall Street when lowering interest rates more than
say bankers, yes? Real interest rates would drop and thus bankers would lose
out because it is also, I imagine, short-term low-interest lending.
This is not so obvious. I would guess that bankers benefit from
*differences* in interest rates ("lend high, borrow low") rather than
on the absolute levels. Also I believe big banks today all have
substantial proprietary trading activities.
-raghu.
