Do low rates exacerbate inequality? Most would say no, since low rates mean that borrowing is cheaper across the board. Except that it isn’t across the board.
Banks saying that demand for loans is low is them blaming consumers/businesses for not wanting loans. But this is one dimensional – there is more to the story!
Wall Street banks are reporting 2Q earnings, and they are struggling with loan growth. Or rather, the lack of it. With rates so low, why is this the case?