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To: SeekAndFind

Ahhhhh, the unintended consequences of gubermint meddling in the economy. No return on savings = no savings (or find another place to invest)...this will hurt the banks long-term because it dries up the reserves they need to make loans. I already cashed in my CDs...it wasn’t even paying enough to offset the risk of bank failure.


9 posted on 03/05/2012 6:34:50 AM PST by Mich Patriot (I am not worried about the deficit. It is big enough to take care of itself. Ronald Reagan)
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To: Mich Patriot
this will hurt the banks long-term because it dries up the reserves they need to make loans.

There are other ways to build capital, but in the O-conomy it is a very slow and laborious process.

Paying higher rates on savings hurts financial institutions through them having to pay for a higher cost of funds. That's why you will find savings on the debit side of a financial institution's ledger, not the asset side.

23 posted on 03/05/2012 8:18:19 AM PST by Colonel_Flagg (Why, yes. I AM in a bad mood.)
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