The banks are only surviving because of the ‘free money’ that the Fed keeps sliding over to them. Every American....from a retirement prospective...is suffering because of bad CD rates and easy cash for the banks. The difference between now and 1929....we’ve kept the banks functional with the Fed money and the rate. We would have done quiet well in 1929, if we’d attempted this same gimmick....at least for a couple of years until reality sunk in.
Free money? How do you figure that?
So were low interest rates in 2002-2003 also the result of saving the banks from failing?
How does low interest rates save the banks? A key indicator of how well banks are making money with our money is something called net interest margin. It’s been falling for years. For all the “free money” they have they are also loaning that money out at really low interest rates. The banks are making less money now in this free money environment then they were making in 2007.
Your theory doesn’t hold water.