bank interest, page-4

Hey GG,

"When was the last time you remember a period where term deposit interest rates (substantially?) exceeded the home loan rates?"

I don't know. But that indicates how keen the banks are to get deposits.

Westpac got a lot of free publicity with offering 8%. It was mentioned often.

The implications to me are: Deflation, deflation, deflation.

Without deposits or other funding to continue the banks' lending: money stops growing. It's almost like the ponzi scheme of debt fuelled growth ends.

- pug