How can their be a liquidity crisis without a rise in bank CD rates? - cd rates iowa
If Countrywide or any other bank has raised its prices relatively low CD, I'm sure it would be flooded with deposits. Throughout the country, has announced a tie 11.5 billion in credit lines. I am sure that Countrywide, the pace of the CDs to vote more around the same as' s in the use of credit lines, or about 6 1 / 2%, Countrywide could attract light + $ 20 billion in new deposits. In short, do not understand the headlines scream "liquidity crisis", while the banks appear not violated for all deposits and maintain its relatively low savings rate. High-performance CD Countrywide, in support of more than $ 98,000 is 5.50%.
Saturday, January 9, 2010
Cd Rates Iowa How Can Their Be A Liquidity Crisis Without A Rise In Bank CD Rates?
Subscribe to:
Post Comments (Atom)
1 comments:
should not be a temporary and very short-term solution to a very serious and dangerous, too little?
If you are doing, another point at random from all the proposed rates, like you, and assuming that it works, and because of money. Since it will not cost that much of this money will get the credit for you and me to raise, b / c they want to break not only the balance, or lose their jobs. And guess who pays for it? Yes, you and I!
This "solution" and create a much more serious problem because it will continue to need more money just to make interest payments on high prices to suit your needs and respond to a higher number of regenerated think people who run in a year and will be a stable society, do not go bankrupt. Then you have to start over. What do you think they are? U.S. Govt?
Will you invest in a company that is on the brink of bankruptcy? You do not want by using a $ 100kbf their money to be paid their bills late and their credit droping a minute? Do you think that some people were reluctant to do so?
Only institutions can not raise interest rates at every level "just because." It's a bad misconception that the banks raise rates simply do what they want to be.
Post a Comment