Banks are hilarious. They use YOUR money to invest and make more money, then they have the audacity to give you paltry interest. Meanwhile they charge a percentage of a sale for processing that has a flat constant amount of processing power used. It costs them the same to process a $1 transaction and a $10,000,000, but they have the gall to charge 1.5% for both. Sure you can argue that the 1.5% is to cover overdrafts and nonpayment, but if you pay the bill in full you should be refunded the extra.
Buy a home. The paperwork costs a % of the home’s value. It’s the same paperwork whether you buy a 2 million dollar home or $200k home. It is not a insubstantial sum. Plus you you tip your realtor a % of the sale value. Absolute scam.
I think the logic with buying a house is, that a person buying a 2 million house can probably afford to pay more, than a person buying a 100k house. So paying a percentage is in theory fair, not conaidering that 100k houses do now go for 2 million.
… Right, except the closing costs go to the bank, not the government. And these days, in so many markets a basic house can cost a small fortune. So, the bank wins on closing costs as well as the loan.
They also create money out of nothing to lend it for profit. So that’s fun.
“Money is created out of nothing, as bank debt” / “Although new loans are being created, the interest on the principal is not. Nowhere in the system is this additional money created. This gives rise to scarcity, which, in turn, creates competition to acquire the extra money to cover the loans’ interest.” / “The competition to obtain the money necessary to pay the interest is structurally embedded in the current money system. […] to pay back interest on a loan requires using someone else’s principal. In other words, not creating the money to pay interest is the device used to generate the scarcity necessary for a bank-debt monetary system to function. It forces people to compete with each other for money that was never created, and it penalizes them with bankruptcy, should they not succeed.” / “When a banker checks a customer’s credit score, it is to assess how successful or aggressive that individual or business will be in contending with others to obtain funds that are not created in sufficiency to pay back the interest on the loan. In a manner of speaking, it’s like a game of musical chairs in that there are never enough seats for everyone. Someone will end up getting squeezed out. There isn’t enough money to pay the interest on all the loans, just like the missing chair. Both are highly competitive games. In the money game, however, the stakes are elevated, as it means grappling with certain poverty or, worse still, having to declare bankruptcy.” (from the book “Rethinking Money: How New Currencies Turn Scarcity Into Prosperity” by Bernard Lietaer [who worked at the central bank of Belgium] & Jacqui Dunne)
Every loan made by a bank can create another loan 90% the value of the first loan. Think about what I just wrote and you will see your argument doesnt scratch the surface of the greed they create.
Banks are hilarious. They use YOUR money to invest and make more money, then they have the audacity to give you paltry interest. Meanwhile they charge a percentage of a sale for processing that has a flat constant amount of processing power used. It costs them the same to process a $1 transaction and a $10,000,000, but they have the gall to charge 1.5% for both. Sure you can argue that the 1.5% is to cover overdrafts and nonpayment, but if you pay the bill in full you should be refunded the extra.
Buy a home. The paperwork costs a % of the home’s value. It’s the same paperwork whether you buy a 2 million dollar home or $200k home. It is not a insubstantial sum. Plus you you tip your realtor a % of the sale value. Absolute scam.
I assume you mean it is not an insubstantial sum.
I think the logic with buying a house is, that a person buying a 2 million house can probably afford to pay more, than a person buying a 100k house. So paying a percentage is in theory fair, not conaidering that 100k houses do now go for 2 million.
… Right, except the closing costs go to the bank, not the government. And these days, in so many markets a basic house can cost a small fortune. So, the bank wins on closing costs as well as the loan.
Yeah I’m not against taxes that tax the rich more.
They also create money out of nothing to lend it for profit. So that’s fun.
Here’s a nice series from Paul Grignon that explains it in video form.
https://youtube.com/playlist?list=PLdMxiaZGboJSgU2raUksCFGSUfWS8eHR8
Every loan made by a bank can create another loan 90% the value of the first loan. Think about what I just wrote and you will see your argument doesnt scratch the surface of the greed they create.
Most don’t pay interest on paltry amounts.