What Do You Think About the Neutral Rates?

Banks never even paid interest on excess reserves until after two thousand and eight, right? A, then how does that new experiment, right? Yes, they're not. If you watch this n to follow the taplot line is the banks are now going to get close to a hundred billion dollars of interest per year on their excess reserves. That is like pure risk free profit. Hundred billion. But by raising the rates, it still trickles out. Makes auto loans cost more, student loans, house uno, mortgages, all of those actually go up. So if you follow the story along, the creditors are getting free money in a higher yield, and the debtors in this

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