It's A Bank's Heaven.....and a Mom and Pop's Hell....

Discussion in 'Economics' started by libertad, Jan 7, 2010.

  1. Let's think this way....

    Let's say I give you a banking license....

    I let you margin 30:1.....

    I loan you money at 0%....."All you want"....

    I then sell you my short term debt at 2%.....

    Mom and Pop.....give you their life savings....
    You pay them 0%....nothing....and do it for years....
    Which forces them to spend what they have....

    For every $1000000 in MOM and Pop savings you have .....I pay you 2%....BUT the 2% is paid on 30X1000000=$30,000,000....Thus you get $600,000....

    And Mom and Pop get nothing....

    Is this in the interest of Mom and Pop ?

    Or

    Is this in the interest of banks only ?

    Since taxes are the source of the 2% paid.....of
    which the majority is paid by Mom and Pop as well....

    What does this suggest ?
     
  2. me2

    me2

    it suggests you finally woke up to your first 'ah ha' moment on how banks make money. called usury - and a whole ethnicity of people have been prosecuted for it.
    http://en.wikipedia.org/wiki/Usury

    do you want to establish 'camps' for bankers? life is not all hannah montanna episodes.

    p.s. - nike makes money by making stuff with cheap labor.
     

  3. ......................................................

    Exactly....

    However ....as Japan has slogged through this for more than a decade......Japan must serve as a forewarning that the Boomers are not exempt from a Japan scenario...

    Which means the savings effort has to be even moreso in earnest....

    And perhaps "retirement" meaning...."not taking risks" or "not working" are not going to be "options".....

    Add to this....SS possibly not there either....

    Meaning.....Consumption from this group will be minimal....