Subject:
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Re: questions on current events
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Tue, 18 Dec 2001 19:20:24 GMT
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Viewed:
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459 times
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"Kirby Warden" <inourimage@msn.com> writes:
> You've pretty much answered your own question, although the creditors
> would pay less, they could still charge the same to their own
> customers.
Do you mean that the _difference_ between the federal interest rate and
the interest rate charged by the credit card companies is fixed,
i.e. that the payment charged for the service remains the same?
Or do you mean that the credit card interest rate remains the same, even
with the decrease of the federal interest rate? It is not quite clear
to me what you mean.
In the first case, it is only fair that the credit card companies make
the same amount of money, even with a fluctuating interest rate. In the
second case, I would say that the competition on the marked cannot be
functioning properly, as the lowering of the federal interest rate does
not benefit the customers.
Fredrik
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Message has 1 Reply:
 | | Re: questions on current events
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| (...) I've read about the shear basics on this subject so what I say about it is certainly arguable, however, maybe I can better clarify what I think I know. A bank can borrow from the federal reserve. There is interest tacked on to what the bank (...) (23 years ago, 18-Dec-01, to lugnet.off-topic.debate)
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