Reply #43: Thank you. [View All]

[oostevo]

Thank you for being so well-informed about this issue, and trying to explain the niceties of monetary policy to others here. You've obviously had a very good education in economic policy, or you are uncommonly good at educating yourself.

I was going to join in this discussion as well, but, judging from the responses you and others received, it seems like it wouldn't have been worth the time wasted arguing. Perhaps some people's biases (whether they be liberal or conservative) are just too deeply ingrained for them to consider other explanations.

(By the way ... I'm not entirely convinced that rate hikes hurt banks to the degree you suggest. Flat yield curves like right now are extremely uncommon, and other financial institutions rely on interest rate arbitrage (the 'carry trade' if you will) much moreso than banks).