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Comments on: Question: Bank funding http://www.tvhe.co.nz/2009/02/03/question-bank-funding/ The Visible Hand in Economics Thu, 05 Feb 2009 04:04:07 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Matt Nolan http://www.tvhe.co.nz/2009/02/03/question-bank-funding/#comment-12974 Thu, 05 Feb 2009 04:04:07 +0000 http://www.tvhe.co.nz/?p=2797#comment-12974 “People expect/demand that mortgage rates not vary much from the OCR. Limited return on money lent means limited ability to pay for it.”

True – but if the bank couldn’t get profitable funding at that rate they would just stop loaning out!

“How do they look in terms of real after-tax returns? I suspect they’re only as miserable as they’ve ever been.”

Probably – but I still feel like the story of “credit constraints” can be overplayed. And this is an important point – given that credit constraints provide the real reason for a lot of intervention here.

]]> By: Miguel Sanchez http://www.tvhe.co.nz/2009/02/03/question-bank-funding/#comment-12684 Tue, 03 Feb 2009 19:21:31 +0000 http://www.tvhe.co.nz/?p=2797#comment-12684 How do they look in terms of real after-tax returns? I suspect they’re only as miserable as they’ve ever been.

]]> By: moz http://www.tvhe.co.nz/2009/02/03/question-bank-funding/#comment-12615 Tue, 03 Feb 2009 11:43:05 +0000 http://www.tvhe.co.nz/?p=2797#comment-12615 (duplicate, edited it and it got corrupted)

]]> By: moz http://www.tvhe.co.nz/2009/02/03/question-bank-funding/#comment-12612 Tue, 03 Feb 2009 11:40:52 +0000 http://www.tvhe.co.nz/?p=2797#comment-12612 People expect/demand that mortgage rates not vary much from the OCR. Limited return on money lent means limited ability to pay for it.

If the banks responded to the crisis by offering 10% or more for deposits, they’d also want to set mortgage rates at higher than that level. Quite how the merchant banker in chief would react is anyone’s guess. Try that with the Australian banks and watch Kevin Rudd go apoplectic in public… I don’t think we’d have “Mortgage Watch”, we’d have usury legislation passed the same day. Not that that is bad in itself, but it’s not even close to what we have now. Great way to wedge the coalition though 🙂

]]> By: Question: Bank funding | TVHE | moneycompleteguide.com http://www.tvhe.co.nz/2009/02/03/question-bank-funding/#comment-12549 Tue, 03 Feb 2009 04:47:56 +0000 http://www.tvhe.co.nz/?p=2797#comment-12549 […] Question: Bank funding | TVHE […]

]]> By: Question: Bank funding | TVHE | abstractinsurance.com http://www.tvhe.co.nz/2009/02/03/question-bank-funding/#comment-12545 Tue, 03 Feb 2009 04:35:00 +0000 http://www.tvhe.co.nz/?p=2797#comment-12545 […] Question: Bank funding | TVHE […]

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