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Ben Carson Doesn't Understand Bank Loans

GOP presidential aspirant Ben Carson had an interesting thought about bank loans when asked about rising interest rates and the national debt, at a closed door gathering of Americans for Prosperity at the South Carolina Tea Party Coalition Convention. He asserted that banks have no incentive to loan people money when the interest rates are near zero. Actually, the opposite is true-- when interest rates are near zero, banks are able to get money from the Fed for nearly free, thus increasing their profit margins when they then loan that money to consumers at a much higher rate. 1/18/15

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