Dispel a myth - banks borrow from the Fed at zero then buy high-yield Treasuries.

Great Debates
1

With the same funds.

This is a persistent conspiracy theory (CT) on progressive boards and is entirely untrue. Banks get their funding the same way all corporations do - raising capital.

Progressives (and I am a liberal) are developing their own sort of anti-reality talking points like this. In other words progressives are getting in on the anti-Fed nut talk.

2

What’s a “high yield treasury”? IIRC, the real projected real return on US treasuries has been zero or even negative for most of the last year.