Tuesday, January 31, 2017

Things change


Interest expenses of domestic financial corporations:


It used to be that interest paid on deposits was 3½ times the size of interest paid on other liabilities of domestic financial corporations.

Today, interest paid on other liabilities is 12½ times the size of interest paid on deposits.

3 comments:

Oilfield Trash said...

A picture of Financial engineering, why take equity positions when you can just horde and clip coupons.

The Arthurian said...

Well now the graph makes sense!

You do mean bond coupons, right?

Oilfield Trash said...

That is the technical meaning. But I use it for all rent extractions as opposed to economic investment.