Michael Brandy, Deseret News
Financial institutions derive their profit based on the "spread" (usually about 4 percent) between what they can loan money for and what they have to pay in interest on savings. In our society, as these institutions compete to satisfy society's "thirst" for borrowing, the "spread" kills the ability of savers to earn any interest on their savings.
If loan rates were to jump to say 10 percent, institutions, in theory, could pay 6 percent out in interest, without hurting their bottom line. This might help borrowers think twice about going into debt and maybe even entice them to start saving more.
- Letter: Climate change is unjustified rhetoric
- Letter: We can do better
- John Florez: Teach our children the love of...
- In our opinion: Navajo Nation looks to combat...
- In our opinion: Marriage definition on...
- David Butterfield: Utah boxing legends...
- Jay Evensen: U.S. silence troubling amid...
- In our opinion: Recent drowning of 800...
- Richard Davis: A historic moment for... 60
- Jay Evensen: U.S. silence troubling... 59
- Letter: Climate change is unjustified... 31
- A. Scott Anderson: Overregulation hurts... 25
- Letter: We can do better 25
- Letter: Pledge for respect 24
- In our opinion: Recent drowning of 800... 21
- Letter: Make healthy choices 13