The Best Business Model In the History of the World
- Thread starter What Would Jesus Do?
- Start date
The best part is that if you are an investment bank, you reap all the rewards and socialize all the costs and downside risk.
It’s fantastic.
It’s fantastic.
It actually is. It allows people to make their own decision to purchase things they don't have the money to purchase.
Only because of the Federal Reserve system.
It was invented to bail out the banks (owners) at the expense of everyone else.
True banks are critical in an advanced economy to organize savings and lending. Absolutely essential services in a capitalist economy.
What isn’t needed is fractional reserve lending, or pyramiding fractional reserve lending on federal debt instruments as though they represented savings (instead of what they actually represent, a future promise to confiscate that amount from productive society).
The cost remains the same, it would just be borne by the borrower (or lender if they default) instead of stealing purchasing power from the rest of society via inflation.
hawkeyetraveler
HB Heisman
Yeah let’s destroy the concept of home ownership by eliminating the ability for people to borrow money.
The concept of a mortgage isn’t the problem. The problem is people trying to live beyond their means and buying more house (or truck/boat/etc) than they can afford and unscrupulous bankers willing to lend them that money because they know they get the asset in the end of the borrower defaults.
The concept of a mortgage isn’t the problem. The problem is people trying to live beyond their means and buying more house (or truck/boat/etc) than they can afford and unscrupulous bankers willing to lend them that money because they know they get the asset in the end of the borrower defaults.
To think we would be anywhere near where we are without banks is foolish.
If you can't make the payment, don't ask foe the loan.
If you can't make the payment, don't ask foe the loan.
