Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: jttmab who wrote (35733)	12/22/1999 10:51:00 AM
From: pater tenebrarum	Respond to of 99985

jttmab, remind me after trading to elaborate a bit... regards, hb

To: jttmab who wrote (35733)	12/22/1999 10:58:00 AM
From: Casaubon	Read Replies (1) \| Respond to of 99985

Credit card interest rates are completely free market. Do not the banks borrow the money from the Fed, to lend. The banks are collecting the spread on interest rates. Therefore, the Fed sets the level of potential profits by adjusting the interest rate. Banks must respond in kind if the Fed raises rates, making it harder to lend money, and therefore potentially less profitable. Credit card rates are just as dependent on the Fed for lifeblood, just as any other lender is.