Posted on 05/01/2023 5:28:37 PM PDT by CFW
“if banks have to pay 4% to depositors, but they’re only receiving one to 2% on the loans that they’ve issued or on the securities that they’ve purchased, they’re looking at losses”
In my day, banks tried for a 3% spread minimum.
Thanks for posting the Big Lie
“The banks I went to primarily wanted to offer 5 to 15-month CDs.”
I’ve noticed that as well. What happened to the one, three, and five year CD choices? A few years ago, the shortest term CD you could get was one year. OZK is currently offering the rate at 5% for a 13 month CD which is the closet thing to a one year CD I could find at a decent rate. Five month CDs were about 4%. A few years ago, the bank would laugh at you if you asked about a five month CD.
Also, my credit union is offering 5.13% for a 15 month CD so credit unions seem to be the better option than a bank.
Bastiat calls that “lawful plunder”
Best option of all is to overwithold to the IRS and place all the overpayment into rollover against next year’s taxes.
IRS interest rate last year was well above any bank’s.
For banks, CUs, etc:
Deposits are liabilities.
Loans are assets.
Yep
PPM, BOA and Citi will take turns gobbling up the banks with sweat heart dead from Uncle Sugar whil treasury/Fed will buy toxic assets. The question will be will it get too big not to hang them all?
An inverted yield curve makes the basic bank model (turn short term money into long term money) unsustainable.
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