ByteOnBikes@discuss.online to A Boring Dystopia@lemmy.world · 3 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 · 3 months agomessage-square206linkfedilink
minus-squarehexabs@lemmy.worldlinkfedilinkarrow-up2·3 months agoWhy do banks do this? Sounds like a favor.
minus-squareJcbAzPx@lemmy.worldlinkfedilinkEnglisharrow-up1·3 months agoWell, many of the people that do this have large stakes in banks.
minus-squaresmeenz@lemmy.nzlinkfedilinkarrow-up1·3 months agoBecause a small rate on a large loan is still a lot of income to the bank
minus-squareThirdConsul@lemmy.ziplinkfedilinkarrow-up1·3 months 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.