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.
- 10 things you never knew about the FBI
- Lawrence and Windsor won't trump Utah...
- In our opinion: The long-term outlook for...
- My view: Balancing personal conviction and...
- Robert Bennett: Hamas and its financial...
- Frank Pignanelli & LaVarr Webb: Re-enactment...
- Letter: Policy disagreement
- Can Hollywood keep the faith in faith-based...
- Lawrence and Windsor won't trump Utah... 105
- Mary Barker: The Romney I may have... 72
- Stuart Reid: Translations of religious... 61
- Dan Liljenquist: Religious liberty and... 50
- In our opinion: History will remember... 46
- Letter: Breeding hate 44
- Letter: Policy disagreement 42
- My view: Balancing personal conviction... 41