ByteOnBikes@discuss.online to A Boring Dystopia@lemmy.world · 2 months agoBorrowing money against their stuff to get more stuff to borrow money...discuss.onlineimagemessage-square206linkfedilinkarrow-up11.48Karrow-down111
arrow-up11.47Karrow-down1imageBorrowing money against their stuff to get more stuff to borrow money...discuss.onlineByteOnBikes@discuss.online to A Boring Dystopia@lemmy.world · 2 months agomessage-square206linkfedilink
minus-squareJcbAzPx@lemmy.worldlinkfedilinkEnglisharrow-up2·2 months agoThey can get interest rates that are lower than the tax they would pay. Often, they hardly pay any interest at all.
minus-squarehexabs@lemmy.worldlinkfedilinkarrow-up2·2 months agoWhy do banks do this? Sounds like a favor.
minus-squareJcbAzPx@lemmy.worldlinkfedilinkEnglisharrow-up1·2 months agoWell, many of the people that do this have large stakes in banks.
minus-squaresmeenz@lemmy.nzlinkfedilinkarrow-up1·2 months agoBecause a small rate on a large loan is still a lot of income to the bank
minus-squareThirdConsul@lemmy.ziplinkfedilinkarrow-up1·2 months agoAnd of course because banks can create more money than they have.
They can get interest rates that are lower than the tax they would pay. Often, they hardly pay any interest at all.
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.