Comment: The 0.25% interest rate to

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In reply to comment: I disagree. (see in situ)

The 0.25% interest rate to

The 0.25% interest rate to borrow is an overnight rate. Banks have used that rate to make a profit at arbitrage, but they do not use the overnight rate for longer term loans, consumer lending.

Additionally, a bank will not necessarily lend even for a 10%-20% gain if it appears very likely that that loan will actually result in 100% loss. Further, you're argument opposing the "willing lender-borrower argument" only address the lender. What about the borrower? Will the borrow take a loan in bad times for 30% interest? 10% interest? What about the borrower Steve?

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