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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (71591)2/12/2016 10:07:43 PM
From: Sam  Read Replies (1) | Respond to of 95422
 
But the interest on that loan would be higher because the bank must recover the money they paid to another institution to hold the bank's unused [not lent out] money.

Or the interest on the loan might be slightly less because making the loan means that the bank won't have to pay that extra money to the Fed. What the CB would be doing is applying a stick instead of a carrot (punishing the bank slightly for not making loans as opposed to giving them something when they make loans).



To: Gottfried who wrote (71591)2/15/2016 12:25:05 AM
From: Woody_Nickels  Respond to of 95422
 
Come on. If the banks pay the Fed to hold money overnight,
that just gives them a reason to charge individuals to hold their
money in savings AND to raise rates on loans.

Believe me, any policy D.C. comes up with will be circumvented
by the banks to maximize their income. That's why it's better for
the Fed to stay out of the markets!


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