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 : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: clochard who wrote (113449)	9/15/2015 3:42:36 AM
From: Elroy Jetson	1 Recommendation Recommended By Fiscally Conservative Read Replies (2) \| Respond to of 220172

If the Fed does raise interest rates for the first time since 2006, from 0.25% to 0.5%, it will generate a large increase in bank earnings and likely a dividend rise for shareholders. Since the collapse of the American banking system in 2008 the Fed has paid banks interest on the 10% of their deposits they've always been required to hold in reserve without lending. A rise to 0.5% will double Fed payments to banks, blowing banks an additional $100 billion annually in government income. Pushing up earnings. And that's especially important since banks have found relatively few credit-worthy borrowers since mid-2008. It's huge expenditures like this which leave people questioning how much longer we can afford to keep elderly Americans enrolled in Medicare.