1. Why Aren't the Banks Getting Loans Instead of Handouts?
... looking at the bottom line and asking lots of questions. One of the most common questions, and one not often answered by the news media is "Why aren't the Banks Getting Loans Instead of Handouts". Believe it or not, the logic behind the choice to give the money rather than loaning it is ... of about 10 million dollars, backed by the Federal Reserve. Banks make their real income from the interest charged on loaning money that they themselves borrow. This is why you see a 1 percent interest rate, for example with the Feds, and you still pay 5 or 6 percent on your mortgage. The fed regula...
- Word Count: 578
- Approx Pages: 2
- Grade Level: High School