You are right...........what I would like people to realize is that banks lend you your own money. What a business.
Don't want to derail this thread, but this is as good a place to post as all the other threads on similar subjects. I personally am against a central bank like most countrues have where someone else is really in charge of printing the country's currency. I think we have an opportunity in the USA to turn things around and get control of the situation. Instead of our government creating a "Bad Bank" to buy all this crap in an effort to get the financial mkts moving, it should just open a bank that has been taken over by the FDIC and compete with the federal reserve system for business. I realize this may be too simplistic of a point of view, but why give money to banks for their crap, then try to get them performing banking business....seems like a waste of time, effort and money! not to mention extremely risky. We've already seen that banks can't be trusted, why "Average Down"? Cut the trade loose! As a side note in 1985 I had a check from a mortgage company that I took to the headquarters of midsized bank to cash it...it took them over 3 hours to come up with enough cash!
I agree with you my friend. I see a revolution under way...........something will change. The best think that could happen is to cancel all debt and nationalize the banking industry. then create a new system with very low fractional reserve lending or none at all.
A system without fractional reserve lending and without central banks it's called a "free banking system" http://en.wikipedia.org/wiki/Free_banking
It's not the system it's the people. When money was gold banksters painted lead to make it look like gold. When tulips were worth millions people got hung for destroying another man's tulip. My great grandfather kept all of his money in a sock. My grandfather kept all his money in the bank. My father kept all his money in bank shares. I will keep all my money in a sock. Lather, rinse repeat. If Hitler didnt exist would there not have been a WWII? Sure their would have. If the Rotchilds wouldnt exist would we have this super free market equal for all great and small? No...
I dont know about to much freedom there. What is really amazing is that banks lend us our own money.........I just can't understand why people dont get it. Maybe too used to the system???
Of course they do. How else do you think banks would be able to pay you interest on your deposit? Where do you think the money to pay interest comes from? You deposit (lend to the bank) for a low rate. The bank lends it to somebody else at a higher rate (mortgage, car, equipment or business loan). The bank profits from the interest rate differential.
No, it's too late. There is no turning things around, at best, you level the whole system to the ground and rebuild. Either way, this whole financial system will crash, it's pretty much written in stone. Only chance we had was with Ron Paul or Bob Barr. It was good to see that about 10% of the people are awake, but that's still not anywhere close to enough.
I know people who believe "fractional reserve banking" means that a fraction of the banks total deposits are kept at your local branch, and the rest is kept at some "main vault" somewhere. They have no idea what it actually means.
That's an argument for basic finance and economics being taught in high school... should also be a requirement to earn any college degree.