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Interest Rates

Interest Rates

“Interest rates. It’s like rent on your buck. The Fed adjusts its monetary policy to say that the right number for super safe banks who are Federal Reserve System members to borrow money from other super safe banks is… 3.5%. Great. Banks borrow all the time. They are pros. No risk. And short borrowings. Like they pay the money back every day almost. Well, more or less.

“So now if you are going to loan money to a corporation, add some risk. The best, safest corporations are called prime....

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