01-27-2017, 05:36 PM
(01-27-2017, 03:49 PM)X_4AD_84 Wrote:(01-27-2017, 01:35 PM)Eric the Green Wrote: The prime rate and the interest received on bonds and money market funds is still near zero after 8 years. Of course that does not stop the corporate credit sharks from gouging the people.
Another thing. After the crash of '08 regulations came into play forcing more conservative reserve requirements on banks backing the cards. The way they helped allocate into the reserves was by increasing the spread between the prime and credit card interest.
True. But the flip side of that is that the money was forced into supposedly zero risk reserves, namely US government obligations. Seen another way, it was a way to force banks to fund the deficit at below market interest rates.