Needless to say, I’m not a fan of fractional reserve lending. ;)[/quote]
Fair enough. What do you think interest rates would be without fractional reserve lending?
Take into account leverage and the cost of capital for providers of equity.[/quote]
They’d be much, MUCH higher…and I would LOVE it!
We’ve been sitting on lots of cash earning under 2% for far too long (trying to stay liquid in case we find the right house and want to use cash). We have no debt other than one or two credit cards that we pay off every month. For us, higher interest rates and lower asset prices would be a godsend.
