The Fed cannot support net interest margins

On Christmas Eve, the Wall Street Journal had two interesting articles on the credit situation in the U.S., one from the banks' perspective and one from the households' perspective. In general, the data were positive but I believe the analysis was incomplete because it fails to consider net interest margins, which are coming down.
The first analysis was about the Fed and its provision of cheap money to banks. This cheap money has not translated into a huge surge in credit. Rather, according to ...


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