Knightskye
09-10-2010, 02:10 AM
http://www.huffingtonpost.com/2010/09/09/fed-low-interest-rates_n_710317.html
With the Fed's key interest rate approaching zero, there's rarely been a better time to borrow. It happens to be a particularly bad time to save, however.
The New York Times reports that the average interest on deposit accounts was 0.99 percent in July, the first time it's gone below one percent since the 1950s.
For that, you can thank the Fed's longstanding low interest rate policy, which has brought banks' quarterly cost of funds to a 26-year low but hasn't resulted in a boom in lending. Historical records on commercial banks' cost of funds going back to 1934 show that the last time banks paid less than one percent for the year was 1960.
We'll make Austrian economists out of them yet! :D
With the Fed's key interest rate approaching zero, there's rarely been a better time to borrow. It happens to be a particularly bad time to save, however.
The New York Times reports that the average interest on deposit accounts was 0.99 percent in July, the first time it's gone below one percent since the 1950s.
For that, you can thank the Fed's longstanding low interest rate policy, which has brought banks' quarterly cost of funds to a 26-year low but hasn't resulted in a boom in lending. Historical records on commercial banks' cost of funds going back to 1934 show that the last time banks paid less than one percent for the year was 1960.
We'll make Austrian economists out of them yet! :D