most value must be being extracted through interest rates
Incorrect. Since all banks are investment banks now, and all investment banks, also have deposits. Most value is currently and for a while is being extracted from commissions of various derivative products. And I am not talking about complex products like CDO, or MBS. Something extremely simple like Interest-rate-swaps.
There is an exciting and entertaining book on this topic from an world expert on this topic. It is written several years back but still relevant. I recommend you read it:
https://www.amazon.com/Traders-Guns-Money-Unknowns-Derivatives/dp/0273776762
Looks interesting...
But also the spirit of this post is that we shouldn't do things like tell people they are wrong and be like "no, it's this other thing" without explaining it.
If it's so simple then why don't I know any more about it than I did 10 seconds ago?
Like: it's so simple but if you wanna understand it you should probably go ahead and read this 440 page book. lol. Legit exactly what I was talking about in the OP. None of these topics are simple but it doesn't stop people from trying to oversimplify them regardless.
Certainly it looks worth the read though I'll check it out.
learning is a strange thing @edicted, seek and thou shall find.
There are many simple things you DO NOT know :)
There are many simple things I do not know.
Doesn't make either of us better or worse. I can only show you the door, you have to walk though it. I have done my part.
It is not about right or wrong, it is about knowledge.
Cheers!
Hey hey hey
You can lead a horse to water, buddy!
You know my knee jerk reaction to your comment was something like:
But on second thought.
It's actually like the perfect comment on a lot of different metrics.
Good jobs. Unironically.