Hacker News Reader

>We don't know what interest rates would be if the fed wasn't promising free money to the big banks. My credit union can offer 2.0%, why can't Bank of America or Chase or Wells Fargo?

Because banks aren't around to make the customers money, they are there to give the shareholders dividends.

View on HN

> Because banks aren't around to make the customers money, they are there to give the shareholders dividends.

Fine, but that doesn't entitle them to free money from the Fed.

For the Fed it’s just the “cost of doing business” at zero cost to them.

Once you are a sufficiently powerful and influential entity, you write your own entitlements and the government delivers them. We saw this clearly in 2008 and 2009.

Reply on news.ycombinator.com