Sun TV Experts ... Just as Smart as OTHER network's wonks
Just a passing chance today that I caught a bit of the Sun TV news financial segment.
Now I do not know who the guy was who they had on presenting himself as an authority but I can lay out for you what he had to say...
The subject was this weeks status quo interest rate non-story and the fact that 1% is a hell of a low prime rate. Among much speculation about the potential for either raising or lowering of the Canadian prime this joker offered the viewers this little nugget from his ... ahem .... mind?
Mr. expert .. opined that the banks like higher interest rates ... because ... they make more money when the prime is higher!
Prime Rate History
Yup! Sure they do sparky .... like when they charge 5% interest on money they pay 1% for? That's a 500% markup by the way. So ... Mr. expert ..... when the prime is ... let's say 4% and the banks mark it up to say 7% .... then you say that is more profit? Or perhaps sparky can actually cite some example where a Canadian Bank marked up the prime MORE than they are doing in today's environment?
Not friggin likely sparky...........
So called expert seems to be both unaware that there are limits to how many points the lenders can get away with adding to borrowed money. Historically .... a few points is about it and the higher the base or prime rate the smaller the margin. Apparently ... Mr. Expert hasn't been around long enough to recall primes that were in the double digits... or ... even what a 5% base rate from the central bank looked like in the lending market.
The last time prime rate started pushing toward double digits banks were lending at 1 point above prime.
Ignorant and innumerate .... some EXPERT you got there SUN TV!
OMMAG
Now I do not know who the guy was who they had on presenting himself as an authority but I can lay out for you what he had to say...
The subject was this weeks status quo interest rate non-story and the fact that 1% is a hell of a low prime rate. Among much speculation about the potential for either raising or lowering of the Canadian prime this joker offered the viewers this little nugget from his ... ahem .... mind?
Mr. expert .. opined that the banks like higher interest rates ... because ... they make more money when the prime is higher!
Prime Rate History
Yup! Sure they do sparky .... like when they charge 5% interest on money they pay 1% for? That's a 500% markup by the way. So ... Mr. expert ..... when the prime is ... let's say 4% and the banks mark it up to say 7% .... then you say that is more profit? Or perhaps sparky can actually cite some example where a Canadian Bank marked up the prime MORE than they are doing in today's environment?
Not friggin likely sparky...........
So called expert seems to be both unaware that there are limits to how many points the lenders can get away with adding to borrowed money. Historically .... a few points is about it and the higher the base or prime rate the smaller the margin. Apparently ... Mr. Expert hasn't been around long enough to recall primes that were in the double digits... or ... even what a 5% base rate from the central bank looked like in the lending market.
The last time prime rate started pushing toward double digits banks were lending at 1 point above prime.
Ignorant and innumerate .... some EXPERT you got there SUN TV!
OMMAG
Labels: Experts Are Fun, SunTV News
posted by OMMAG at 8:12 p.m.
5 Comments:
Down here we call an expert "someone from out of town."
har ... good...........
isnt SUNTV supposed to be the canadian equivilant of Fox News?
I just saw your comment about my brother Hank/Moose.....to me he was always Jimmy. How and when did you know him?
420 Eagle St. South ... Phil P.
You used to live in the little house next to Mouse...
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