By Way of my sole..
.. assist on updating material to War and Spore.. h/t: Yves Smith@naked capital (who has BTW a pretty informative take on Chinese/US currency dealing whilst “diverting” attention from this in criticizing the “carry trade”).
Snipped from that same piece and edited out I couldn’t have made the same point better myself.. here it is:
… low rates (interest) are an ideal setting for banks to make money. Greenspan pulled the same trick in the wake of the S&L crisis, and it enabled banks to rebuild their very wobbly balance sheets comparatively quickly.. This plus high spreads makes for a very attractive environment for any new business.