John, I could answer your question "off the cuff" but would rather put it to the members of the [EMAIL PROTECTED] list , which has several capable economist members.
I am separately sending you an invitation to join the list. On my end I will do some research so I can reply from an informed basis. --------- Forwarded Message --------- DATE: Mon, 10 Nov 2003 22:56:15 From: ERA <[EMAIL PROTECTED]> To: William B.Ryan <[EMAIL PROTECTED]> Cc: Hi Bill, Haven't been in communication with you for a while, however thought you might be able to help me with this one. I have a question about American banks. How do they survive and make a working profit with interest rates currently running at one per cent? The Japanese banks have been running at almost zero for a long time, but it is no secret they are being propped up by the taxpayer. Can something similar be true in the US? Surely not! I realise that they gain about 25% of their income from fees and charges, but that leaves 75% to be accounted for. Perhaps the increased volume of loans in recent times accounts for part of the 75%, however it remains a mystery to me. Have the commercial banks diversified their spread of other investments to such an extent that they no longer need much interest income in order to prosper? Regards, John Hermann (Adelaide, Australia) --------- End Forwarded Message --------- ____________________________________________________________ Enter now for a chance to win a 42" Plasma Television! http://ad.doubleclick.net/clk;6413623;3807821;f?http://mocda1.com/1/c/563632/113422/313631/313631 AOL users go here: http://ad.doubleclick.net/clk;6413623;3807821;f?http://mocda1.com/1/c/563632/113422/313631/313631 This offer applies to U.S. Residents Only --^---------------------------------------------------------------- This email was sent to: [EMAIL PROTECTED] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcVIgP.YXJjaGl2 Or send an email to: [EMAIL PROTECTED] TOPICA - Start your own email discussion group. FREE! http://www.topica.com/partner/tag02/create/index2.html --^----------------------------------------------------------------
