Where does a lenders money come from?

gillywibble said:
No cognitive dissonance, I just thought your question was ridiculous.
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I thought it was quite pertinent, you seem to be suggesting that banks are lending out their customers money without their knowledge. So seeing as you have a bank account, and (presumably) read the T&Cs before signing anything, you'll know this to not be the case.

Your statement;

"They lend you money they don't own, then charge interest on it. How is that not a scam?"

Becomes;

"They lend you money they don't own, but have the owners permission to do so, then charge interest on it, and pay some of that interest to the owner. How is that a scam?"

Which is a bit more accurate.

It's no different to someone getting a buy-to-let mortgage and making money from rent. They don't own the property, but they are lending it to someone in order to make a profit. Unless that's a scam too of course.
 
Mr^B said:
It's no different to someone getting a buy-to-let mortgage and making money from rent. They don't own the property, but they are lending it to someone in order to make a profit. Unless that's a scam too of course.
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The bank makes money on a property that doesn't exist :)
 
gillywibble said:
The bank makes money on a property that doesn't exist :)
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To think you called me stupid for asking you a question (a genuine question which was just asking for advice as to which part of the video to watch, mind) regarding a video you posted, yet you can't even grasp simple concepts.

** Uncalled for **
 
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gillywibble said:
I tried to explain it several times. Just because people don't understand a concept doesn't mean it's wrong.

The video explained it perfectly well, if you don't want to watch it then that's your concern.

Anyway, neither this or the Bradbury pound thread are 'conspiracies'.
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You didn't respond to questions you posted random hour long videos... it does leave the impression that if you can't answer basic questions about something you're proposing/supporting then you perhaps don't really know what you're talking about

NirK said:
I already posted a link, as well as other people posting explanations... don't know why I bothered taking the time to do that because you clearly are just trying to be confrontational for the fun of it and have no interest in the actual subject.... Bit of a contradiction saying that other people come across as "retarded"
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It does come across as retarded - you made a claim you now refuse to clarify or cite any evidence for... you've since posted a link showing that banks have influence... well done - if you'd claimed banks are influential then I wouldn't have questioned your statement in the first place.... the statement you made was a bit different
 
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gillywibble said:
The bank makes money on a property that doesn't exist :)
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That's different, that's money which doesn't exist, not money they don't own.

Banks lending money which doesn't exist, yes, that can probably be classified as a scam. But it has as much existence as any of the money on any of their books, so doesn't really follow as an argument.

I know this is going to end up as a FIAT is a scam discussion, so I'll duck out here.

:)
 
sigma said:
..
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And proud of it.

I worked hard, all my life, in order to save up £100,000 so that I could buy a house to rent out to make some money.

What did the bankers do? They borrowed £1111.12 from the Bank of England (known as high powered money) which under the Fractional Reserve Banking System they can generate a loan of £10,000. That loan then becomes a deposit, of which 10% must be held on account and the rest loaned again.

Eventually, the Bank has recirculated enough cash deposits that they can afford to buy a house, worth £100,000, which they rent out to make some money.

:)
 
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Well you're certainly quicker than me when it comes to clicking edit/quote. Will give you that.

Wasn't avoiding - it's part of the larger issue of why our country is in the mess that it is. Blaming it all on bankers is laughable.
 
Tis funny how these youtube videos would seem to indicate that banks ought to be growing at an exponential rate when, in reality, they somehow aren't... Might make some people wonder if the funny youtube videos don't exactly reflect reality.
 
dowie said:
Tis funny how these youtube videos would seem to indicate that banks ought to be growing at an exponential rate when, in reality, they somehow aren't... Might make some people wonder if the funny youtube videos don't exactly reflect reality.
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Says the man who doesn't understand inflation.
 
Several banks I deal with process tens of thousands of FX and MM transactions every day - why aren't they increasing in size ten fold on an almost hourly basis?
 
gillywibble said:
Says the man who doesn't understand inflation.
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I'm trying to understand, honestly I am... how does a relatively low inflation rate account for the fact that banks aren't multiplying in size on a continuous basis if your youtube video of money supply multiplying at an alarming rate is a reflection of reality?
 
dowie said:
I'm trying to understand, honestly I am... how does a relatively low inflation rate account for the fact that banks aren't multiplying in size on a continuous basis if your youtube video of money supply multiplying at an alarming rate is a reflection of reality?
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Banking inflation is not done with helium.
 
gillywibble, let me ask you two direct questions. Yes or no will suffice although feel free to post youtube videos if that works for you.

1. Do you have a bank account?
2. Have you ever worked in Financial Services?
 
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