Super-low interest rates also ensure that the big banks, fated to be wards of the government if the new financial reform becomes law, will have generous margins between their borrowing costs and lending revenues. This will enable them to further pad their balance sheets and correct the mistakes of yesteryear.
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There’s a flip side, however. It only takes simple math to know that when interest rates are kept low, so are returns on savings and investment.
via No, Really? (Hard Knocks From Easy Money) – The Market Ticker ®.