ByteOnBikes@discuss.online to A Boring Dystopia@lemmy.world · 23 days agoBorrowing money against their stuff to get more stuff to borrow money...discuss.onlineimagemessage-square201fedilinkarrow-up1618arrow-down15
arrow-up1613arrow-down1imageBorrowing money against their stuff to get more stuff to borrow money...discuss.onlineByteOnBikes@discuss.online to A Boring Dystopia@lemmy.world · 23 days agomessage-square201fedilink
minus-squarehexabs@lemmy.worldlinkfedilinkarrow-up2·23 days agoWhy do banks do this? Sounds like a favor.
minus-squareJcbAzPx@lemmy.worldlinkfedilinkEnglisharrow-up1·22 days agoWell, many of the people that do this have large stakes in banks.
minus-squaresmeenz@lemmy.nzlinkfedilinkarrow-up1·22 days agoBecause a small rate on a large loan is still a lot of income to the bank
minus-squareThirdConsul@lemmy.ziplinkfedilinkarrow-up1·22 days agoAnd of course because banks can create more money than they have.
Why do banks do this? Sounds like a favor.
Well, many of the people that do this have large stakes in banks.
Because a small rate on a large loan is still a lot of income to the bank
And of course because banks can create more money than they have.