Interest on loans is high at present.

You're assuming interest only loans.

Banks charge higher interest on loans to risky customers.

Corporate loans tend to be for simplicity purposes, interest only loans.

But for the most part they're interest only loans.

It doesn't think about things like interest income from your bank account, or interest expense on any loans you have.

And for the sake of simplicity, I'm going to assume that the loans in this presentation are interest only loans.

So this bank paid 1 billion for the right to get the interest and principal payment on those loans.

Can a bank just continue issuing loans and checking accounts indefinitely and essentially collecting the difference in the interest between the interest it gets on the loan and the interest it gives on the checking account?

The government will provide interest free loans to firms that participate in the program.

On interest expense.

So when I talk about the short term interest rate I'm talking about the interest rate on loans that are made over very short periods of time.

You get interest on the interest from previous years.

Interest rates, or interest on your mortgage, or how much interest do I owe on my credit card.

They didn't make loans and then sell the loans.

So, corporate loans, or loans to corporations or banks.

live on the interest payments.

But the investment bank, they're not in the business of servicing loans or keeping loans on their balance sheets.

Our interest converges on that point.

Report on the person of interest.

Farmers defaulting on loans had to auction off their land.

There's very little chance of them defaulting on their loans.

They serviced the loans.

loans, they're not liquid.

Those loans aren't available.

loans to this bank.

And they were all going to pay 10 on their loans.

You can kind of say they keep on renewing those loans.

Let's say a bunch of borrowers start defaulting on their loans.

And the loans are just the right on these 10 payments.

Two of those other loans, they came due, no one was willing to renew the loans, or give them new loans.

I put on an air of interest.

I will give you interest on it.

I don't even get interest on it.

They bought all these loans.

I majored in Student Loans.

So 9 million in loans.

Kiva facilitated 500,000 in loans.

loans to his customers, whatever.

And I don't make loans.

She paid seven percent interest on the loan.

And I want to get interest on it.

Remember, I'm getting interest on all of this.

But interest on a mortgage is tax deductible.

Do I get any interest on my 250,000?