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Showerthoughts_Mod t1_iu7gefh wrote

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1

Send_Your_Noods_plz t1_iu7j1hy wrote

Thats technically true, and youre using that money to buy more money for less.

43

HijadelasAmericas82 t1_iu807bs wrote

And if you already bank at that bank, then you're buying your own money for more money but you won't see more money yourself ☹️

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ctl-alt-replete t1_iu8cs5t wrote

They’re selling you money NOW for even more money LATER. Many people can’t wait (or don’t want to wait) to earn more money later. They want it now.

And banks control the world cuz of it.

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Strappedkaos t1_iu8qk7x wrote

Wait till you learn how the debt for your loan was made possible using the debt loan of another person that received their debt loan from someone else's debt loan...

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lepobz t1_iu965c3 wrote

But that future money won’t be worth as much. So they have to charge you more for it now.

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waconaty4eva t1_iu97mty wrote

The bank can loan about ten dollars for every dollar deposited. They loan you back credit at interest which you must pay real money back on.

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adoremerp t1_iu9aecf wrote

It's robbing future you, travelling back in time to present day, giving you some of the money and keeping a cut for itself.

−1

cha614 t1_iu9d2pc wrote

The definition of interest is literally the rate for the use of money lent

2

dewayneestes t1_iu9nd2i wrote

Replying to Strappedkaos (#311,887)

I used to work in secondary marketing in the 1990s, we’d assess and bundle mortgages and resell them to other institutions. This was immediately after the Savings & Loan meltdown so we’d get packages from places like Silverado Savings which had been taken over and liquidated by the government body RTC. I learned a lot, like the importance of time of day of a transaction, and it’s insane effect on profits. It was a very strange business and an odd introduction to the world of finance. Most of what I did (due diligence) is now either performed by computer or more likely not performed at all.

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NeedScienceProof t1_iu9oh9m wrote

Consider that ninety percent of this "borrowed" money did not exist until it was created as a loan.

Exactly how do banks "loan" money they never had?

2

Dr-Retz t1_iu9t62o wrote

That is the premise of asking for money from anyone other than friends or family.

2

astronaut_tang t1_iu9uqe8 wrote

Also, to get the loan, you have to prove to the bank that you don’t need the loan.

1

Paolo2ss t1_iu9za4k wrote

They give you money that you dont have. There is value in that and thats why you are paying them more later on.

5

ThePrussianGrippe t1_iu9zxfi wrote

Replying to a10lber (#320,215)

The entire concept of bitcoin has nothing backing it except what people think it’s worth. Does that sound at all different from fiat currency? Which, at the very least has more tied to its value than what a bunch of tech bros believe.

Also, again. It’s not even a currency. It’s a commodity.

3

a10lber t1_iua30qf wrote

Replying to ThePrussianGrippe (#320,452)

It sounds to me like you have not done any research on Bitcoin. Because, if you had, you would know what it's backed by. Feel free to educate yourself using my comment history or stay ignorant.

0

ThePrussianGrippe t1_iua3oni wrote

Replying to a10lber (#320,959)

Oh I’ve read plenty into it. Which is why i know enough to not call it a currency and why I’m staying away from the world’s biggest (and environmentally terrible) pump and dump scheme.

5

Ashitaka310 t1_iua4inq wrote

You are just renting money from the bank. Like anything else you rent, of course you have to pay for it until you return it. And compare to most things you rent, the cost of renting money is quite low. It's only that people usually rent so much of it at a time that the cost adds up.

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Sometimes_Stutters t1_iua74bl wrote

Technically they go to the federal reserve and get money at a lower interest from them, then give that to you at a higher rate. They may choose to sell your debt, but it’s not necessarily a given.

2

adiosmith t1_iuagdhn wrote

Depends on the loan. Most often they buy you an asset in exchange for money.

1

ThePrussianGrippe t1_iuamhua wrote

Replying to a10lber (#324,121)

Pffft. No. Just no. I have no need for bitcoin, much like corn futures. It’s a commodity, not a currency. It is fundamentally useless as a currency for the exact same reason its being used as a pump and dump. In fact for it to even be used as a currency in a common way it would have to plummet in value and stay at a stable value.

Try not to lose your house when the bubble pops more.

4

ZeroSuitBayonetta t1_iuaq9tw wrote

Replying to a10lber (#324,601)

There's always been someone like you that says something like this. This isn't the first time a new currency like Bitcoin has come up in history.

Some people just don't need it, wussy. Get over it.

3

BaldEagleRising17 t1_iub0t9c wrote

And most of the money they sell you doesn’t actually exist until you buy it.

1

wuvireday t1_iuc8rri wrote

Replying to lepobz (#314,822)

exactly! so i really don't understand why would people choose to have a debt instead of just saving up if they really want to spend it on something

1