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Borrowers, pension funds is not the real world.Banks with high...

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DavoMagic

16,785 Posts.

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19/09/19

16:37

Post #: 40484806
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Originally posted by jantimot: ↑

Anyone who is a net borrower wants lower interest rates.

Incumbent pollies can’t afford a housing or stock market (i.e. Pension Fund) crash, so they want low/lower interest rates.

The banks actually want higher interest rates. They can’t make margins on zero or negative rates. Look at the European banks. Basket cases.

Companies want lower interest rates to fund share buy-backs to raise EPS to boost CEO bonuses.

Lots of people want lower rates, if only they knew what they are going to get as a result. But the banks aren’t among them.

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Borrowers, pension funds is not the real world.

Banks with high interest rates means the game is harder meaning the banks need smarter operators as they have to roll their sleeves up instead of relying on short term ponzi
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