tag:blogger.com,1999:blog-8242926316765633205.post9090112907852166121..comments2024-03-17T04:14:44.845-05:00Comments on Frugal Scholar: My Sentiments Exactly: Why Can't I Be a Megabank?Frugal Scholarhttp://www.blogger.com/profile/12696815672500452503noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8242926316765633205.post-4600421844059551492010-04-21T10:18:30.782-05:002010-04-21T10:18:30.782-05:00@Cubicle--I THINK I understand what you're say...@Cubicle--I THINK I understand what you're saying. Very snazzy! My problem is that I'm a good saver, but a mediocre investor. <br /><br />@Shelley--No magic in interest rates from credit unions, I'm afraid. My kids are getting .75% on a savings acct at a credit union. I'm getting a whopping 1.3 at AMEX personal savings.Frugal Scholarhttps://www.blogger.com/profile/12696815672500452503noreply@blogger.comtag:blogger.com,1999:blog-8242926316765633205.post-4616498830482116412010-04-21T06:19:51.723-05:002010-04-21T06:19:51.723-05:00Have you looked into credit unions? Mine isn'...Have you looked into credit unions? Mine isn't paying huge interest either, but I'm thinking the loan rates are likely more fair. The bigger credit unions can do mortgages, money market accounts, stock investment etc. Not sure what is their relationship with the US government re: borrowing. I do know they annoy the banking industry and that is one of the main reasons I love my credit union!Shelleyhttps://www.blogger.com/profile/10239488936038510294noreply@blogger.comtag:blogger.com,1999:blog-8242926316765633205.post-62988802667999121222010-04-20T20:28:22.464-05:002010-04-20T20:28:22.464-05:00It's a racket. As long as interest rates stay...It's a racket. As long as interest rates stay low, the banks have a license to effectively print money. <br /><br />Companies like Annaly Capital Management (NLY) have taken great advantage of this by selling mortgages back to the Feds under the pools that Fannie and Freddie Mac are guaranteeing.<br /><br />As long as rates stay low, their printing press is in business. They offer a great dividend yield (15% or so), and because they are set up as a REIT, they are required to pay out most of their profits in the form of dividends. <br /><br />When rates eventually go up, their stock price will drop because the printing press gets shut down. You can reap the benefits of the megabanks if you want to take on that risk through a stock purchase.<br /><br />I can't convince myself to do it, but it has been interesting to read about and research.Over the Cubicle Wallhttps://www.blogger.com/profile/04842722161649016062noreply@blogger.com