I believe the China model was to pay abysmal returns for bank deposits and use that to fuel economy, but now we have discovered that in the USA a very similar scheme is implemented when you place your money into lion's mouth basically for free.
Re:Risky bank debt makes customers safer
by Hermitian909 on Monday May 29, 2023 @06:03PM
(#36118646)
The hypothesis is that the net benefit to society is higher. The banks can only offer higher returns based on the value they capture, which might be a lot less than they produce.
If the higher risk is a net benefit, then those riskier banks should be able to pay higher returns on your deposits. Why don’t they?