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.
- In our opinion: National security and the...
- My view: hippies, 2 Hell's Angels, one...
- Robert J. Samuelson: The false charms of...
- Ralph Hancock: The anti-establishment delusion
- Is it time for our first woman president?
- Jay Evensen: On Second Thought: The 1 percent...
- My view: They run toward danger
- My view: Online purchases are not tax-free
- In our opinion: National security and... 65
- Is it time for our first woman president? 55
- Robert J. Samuelson: The false charms... 39
- Letter: Hillary and FOIA 18
- Letter: No labels in 2016? 17
- In our opinion: The lesson of... 17
- Ralph Hancock: The anti-establishment... 14
- Arthur Cyr: US presidential politics... 13