When the yield curve inverts, banks' funding costs rise above what they earn by lending. This can produce a credit crunch.
More Quotes from Greg McBride:
There are some very attractive savings offers for consumers right now. Average rates on certificates of deposit are the highest they have been in almost five years.Greg McBride
I don't think there is any doubt that credit standards are tougher at this point than they were a year ago. The very best rates only go to the very best credit profiles.
Greg McBride
The fact is an ARM that you took a year ago could easily adjust to 6.5 percent or 7 percent percent at the next adjustment. Contrast that with the ability to lock in 6 percent for the next five years.
Greg McBride
These are not things that are subject to price competition. No bank is going to advertise low bounced-check fees.
Greg McBride
Sometimes that difference between short-term rates and long-term rates expands and sometimes it narrows. That difference has narrowed in the last two years, which hampers banks' ability to profit from the difference.
Greg McBride
The average homebuyer moves every seven to 10 years,
Greg McBride
Readers Who Like This Quotation Also Like:
Based on Keywords: invertsActing is all about honesty. If you can fake that, you've got it made.
George Burns
There are eleven million Jews in the world. I don't say that all of them will come here, but I expect several million, and with natural increase I can quite imagine a Jewish state of ten million.
David Ben-Gurion
I have been absolutely hag-ridden with ambition. If I could wish to have anything in the world it would be to be free of ambition.
Tallulah Bankhead