Banks Worried About Interest Rate Hikes?
I don’t know why, but I’m almost insulted by this.
It seems that not only are the rest of us worried about interest rate hikes, the banks are also worried about interest rate hikes. Why is that?
Because it seems that while many people haven’t been able to take advantage of the interest rate decreases as one might have thought, banks have been using the money we pay them and we deposit with them to borrow money at these extremely low rates and turn them into pretty big profits. They’re now worried that if interest rates go up, their profits will go down and possibly hurt some banks.
The truth of the matter is that all of us knows that if the banks aren’t making enough profits by borrowing this money and turning it around to use the way they’re doing it right now, they’re just going that more fees that they charged us already to make up the difference. There are two proven that they’re willing to take such drastic measures by their reaction to the new credit card rules that are coming.
Also, I find it ironic that the banks would go out there and say something like this and think that the rest of us would have any sympathy for them based on the behavior they’ve been exhibiting over the past couple of years. Personally, if another bank has to close because they’ve gotten used to being able to get loans and suddenly can’t, I’m all for it. Probably more banks need to be put into the position that some of the rest of us have been put in when we’ve been trying to get loans or credit cards. I mean, when even rich people can get loans to buy houses, then things are pretty bad all over.
There’s already a prediction that more banks will close than what closed in 2009, when we had about 140 banks shut down. Most of that is going to be related to commercial real estate, but if some banks are going to close because of their previous practices that, it seems, they haven’t learned anything from… oh well.