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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (377999)	7/23/2018 1:15:07 PM
From: cosmicforce	Read Replies (1) \| Respond to of 542946

<This delta remains fairly constant> Except in the case of credit cards and mortgage backed securities. It appears that QE1 to QE4 "created" dollars out of nowhere and then gave these to the banks at below-prime. After almost 15 years, I haven't figured out who "got" that money other than the "banks" and their shareholders.

To: Sun Tzu who wrote (377999)	7/23/2018 1:24:48 PM
From: ryanaka	Read Replies (1) \| Respond to of 542946

Yes, that's what I meant, the difference. They borrow at prime rate and lend at higher rate. The demand on the loans for businesses will decrease if business conditions get worse, but right now businesses are fine. Consumer loans will depend mostly on the housing markets, right? Other loans such as educations loans will have a rather fixed demand. Usually in a rising rate environment they probably make more (of the difference) I would guess. Did you work as bank executive or in a closely related profession? I'm not an expert. You may be right.