- This topic has 5 replies, 2 voices, and was last updated 16 years, 9 months ago by
patientrenter.
-
AuthorPosts
-
November 30, 2007 at 11:10 AM #11028December 1, 2007 at 1:22 AM #106132
patientrenter
Participantandy, in a true free market, I’d agree with you, but it’s not a completely free market.
Here’s how the pols do it: Cajole banks into lowering the reset rates. In return, lower the fed funds rate to increase banks’ margins for as long as it takes to make it up to them. If banks don’t participate, you get rough with them. It’s not going to look good if they are pushing people out of their homes, so it’s easy to destroy a banks’ good public image and force them onto the ropes. Make an example of one or two renegade banks and they’ll all fall into line. Better yet, make it clear you will make an example of any renegade bank and they’ll all fall into line before they get into trouble.
So who pays so that the borrowers can get a better-than-market deal? Savers who deposit money in banks or money market funds.
Patient renter in OC
December 1, 2007 at 1:22 AM #106226patientrenter
Participantandy, in a true free market, I’d agree with you, but it’s not a completely free market.
Here’s how the pols do it: Cajole banks into lowering the reset rates. In return, lower the fed funds rate to increase banks’ margins for as long as it takes to make it up to them. If banks don’t participate, you get rough with them. It’s not going to look good if they are pushing people out of their homes, so it’s easy to destroy a banks’ good public image and force them onto the ropes. Make an example of one or two renegade banks and they’ll all fall into line. Better yet, make it clear you will make an example of any renegade bank and they’ll all fall into line before they get into trouble.
So who pays so that the borrowers can get a better-than-market deal? Savers who deposit money in banks or money market funds.
Patient renter in OC
December 1, 2007 at 1:22 AM #106260patientrenter
Participantandy, in a true free market, I’d agree with you, but it’s not a completely free market.
Here’s how the pols do it: Cajole banks into lowering the reset rates. In return, lower the fed funds rate to increase banks’ margins for as long as it takes to make it up to them. If banks don’t participate, you get rough with them. It’s not going to look good if they are pushing people out of their homes, so it’s easy to destroy a banks’ good public image and force them onto the ropes. Make an example of one or two renegade banks and they’ll all fall into line. Better yet, make it clear you will make an example of any renegade bank and they’ll all fall into line before they get into trouble.
So who pays so that the borrowers can get a better-than-market deal? Savers who deposit money in banks or money market funds.
Patient renter in OC
December 1, 2007 at 1:22 AM #106268patientrenter
Participantandy, in a true free market, I’d agree with you, but it’s not a completely free market.
Here’s how the pols do it: Cajole banks into lowering the reset rates. In return, lower the fed funds rate to increase banks’ margins for as long as it takes to make it up to them. If banks don’t participate, you get rough with them. It’s not going to look good if they are pushing people out of their homes, so it’s easy to destroy a banks’ good public image and force them onto the ropes. Make an example of one or two renegade banks and they’ll all fall into line. Better yet, make it clear you will make an example of any renegade bank and they’ll all fall into line before they get into trouble.
So who pays so that the borrowers can get a better-than-market deal? Savers who deposit money in banks or money market funds.
Patient renter in OC
December 1, 2007 at 1:22 AM #106284patientrenter
Participantandy, in a true free market, I’d agree with you, but it’s not a completely free market.
Here’s how the pols do it: Cajole banks into lowering the reset rates. In return, lower the fed funds rate to increase banks’ margins for as long as it takes to make it up to them. If banks don’t participate, you get rough with them. It’s not going to look good if they are pushing people out of their homes, so it’s easy to destroy a banks’ good public image and force them onto the ropes. Make an example of one or two renegade banks and they’ll all fall into line. Better yet, make it clear you will make an example of any renegade bank and they’ll all fall into line before they get into trouble.
So who pays so that the borrowers can get a better-than-market deal? Savers who deposit money in banks or money market funds.
Patient renter in OC
-
AuthorPosts
- You must be logged in to reply to this topic.