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Well, unless we get some unrealistic growth rates like 4-5% there is no way interest rates can ever be more than 3% on our federal debt or it will bankrupt our budget by basically adding about 500 billion in spending just for interest.
So when we've made loaning money so unprofitable for banks (which we all learned back in elementary school is how banks SHOULD be making money), is there any surprise huge banks are looking for ways to cheat and scam the system to make 10% profit on revenue like Big Pharma and Big Energy? Or even the 15% being made by tech firms?
Ever ask yourself what the hell the banking industry DOES to make 10-12% returns if it's NOT lend money?
It's a house of cards. All the regulation in the world doesn't change the fact the banking industry does NOTHING to make money. It used to be an honest living. Save people money, loan it to people and business at reasonable interest rates and everyone is happy. The Fed has kind of destroyed that whole dynamic in their attempts to "stimulate" the economy through government spending (which is incredibly inefficient as compared to the private sector).
The only way we have $20 trillion in debt and revenue of $3.2 to $3.4 trillion is if the interest we pay on the debt is under 3%.
Hillary is going to attempt to tax the problem away, hoping she can somehow both RAISE federal tax revenue (to something like $4 trillion/year) AND stimulate the economy at the same time, but we know throughout history that almost never happens. Especially when you look at the house of cards all the other major global economies are.
The only reason our economy is not completely flat lined over the last 6 years is energy is dirt cheap. And that means $1500-$2000 in every middle class pocket more per year. It's been Bush's stimulus plan on steroids just done outside Obama's control (in fact he's been trying hard to prevent it any way the EPA and foreign policy allows him to try). Could you imagine this economy WITHOUT a middle class stimulus package that basically put $1500-$2000 more dollars into every family in America?
Nothing the federal government under Obama has done jack **** to the economy except kept it right at 0.0% growth. Once the fed lowered interest rates to practically nothing, that's all that left for the democrats to do. And now he's going to kick the can down the road to someone else. Because 2-3% interest on loaning money is not healthy. Everyone with cash will want to do other things with it because the rate of return is too poor.
It's kind of a big mess that no one wants to talk about.
