View from the Center and Left Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : View from the Center and Left

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sun Tzu who wrote (378004)	7/23/2018 1:30:01 PM
From: cosmicforce	Read Replies (2) of 542968

My comment was strictly to the fixed-delta assertion. The banks appear to have been supercharged (and indirectly companies qualified for the ridiculously low rates that were below inflation rates)... no wonder the 1% rode high! They were disproportionately likely to benefit while everyone elses' rates between prime and what they were charged was actually based upon almost zero (and in some cases negative) interest rates provided to lenders. If I generate a magic $1 that is put into the economy and loan it to you at 3% - together, we have actually made 103% on that transaction not 3%. A 3rd party (your proxy) may re-lend at 18% to card-holders (through a different unit) and make another 15% on that. So when it comes time to pay, your making 21% when it is paid back (if its even paid). The problem is that the US Gov't paid losses for banks because of "too big to fail" arguments so let's say they got debt relief of 30% - their net was more like 15% + 30% - a whopping 45% for the money they transacted. It was (and continues to be) a huge Ponzi scheme IMO.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next