Federal reserve lends money to member banks at zero interest then banks buy US bonds and recieve 2% interest free money for banks (no risk) Wonder how many billions or maybe even trillions in treasury bonds banks hold
From CNN - check this out. Will you be 'hating on Dems' for this too or think this would be a better alternative?
Sen. Elizabeth Warren, D-Massachusetts, introduced a bill that would take the interest rate for student loans from 3.4% to less than 1%.
"If the American taxpayer is gonna invest in those big financial institutions by giving them a great deal on their interest rate, let's invest in those students by giving them the same deal," Warren told CNN's Jake Tapper.
Critics say it's not quite the same - student loans are riskier than short-term, bank-to-bank lending. Warrens says loans for big banks are no-risk because they're still "too big to fail."
"Let's make at least a level playing field on those investments," she said.