Thread by @BvddyCorleone

@coloradotravis @CTYRTZL 1/X- Let’s go back to basics (last time I did this, @profplum99 retweeted my comments about money only to liken them to a kindergarden story 😅).

Borrowers demand money. Lenders supply money. Either side can push interest rates up or down, all other things being equal.

@coloradotravis @CTYRTZL @profplum99 2/X- Let’s say economic times improve and investors see a lot of new opportunities to earn great returns. But they lack capital. So demand for money increases. That will push interest rates up, all other things being equal.

@coloradotravis @CTYRTZL @profplum99 3/X- Let’s say economic times turn bad and investors see fewer opportunities into which they would invest capital. So they reduce their demand for capital. That will reduce interest rates, all other things being equal.

@coloradotravis @CTYRTZL @profplum99 4/4- Now let’s look at lenders. Let’s say the pool of lendable funds rises, for whatever reason. Rates will fall, all else equal.

Now let’s say the pool of lendable funds fall. Interest rates will fall, all other things being equal.

So both sides can impact interest rates.