Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: SeekAndFind

If you like real-world lessons, take out a ten thousand dollar loan for a month and put the money into a savings account at the same bank. Look at the percentage difference. Not the percentage rates of the loan and the savings account, but the amount you receive in interest from the savings account as a percentage of what you pay in interest for the loan. The banks always win.


7 posted on 03/05/2012 6:29:00 AM PST by blueunicorn6 ("A crack shot and a good dancer")
[ Post Reply | Private Reply | To 1 | View Replies ]


To: blueunicorn6

Of course they always win. They’re in the business of buying money wholesale and reselling it at retail. Leaving loss leaders aside, do you no expect your local grocery store to charge more for cantaloupes than they paid for them?


10 posted on 03/05/2012 6:37:16 AM PST by 2 Kool 2 Be 4-Gotten
[ Post Reply | Private Reply | To 7 | View Replies ]

To: blueunicorn6
"If you like real-world lessons, take out a ten thousand dollar loan for a month and put the money into a savings account at the same bank. Look at the percentage difference. Not the percentage rates of the loan and the savings account, but the amount you receive in interest from the savings account as a percentage of what you pay in interest for the loan. The banks always win."

Well, that's pretty much the current plan: you allow the banks to arbitrage off the difference between .04% cost and 24.25% interest on consumer credit cards.

The people who get hit first are the unemployed who are living off CCs, longer term it's anyone who derives substantial portions of their income from interest paid on readily accessible low-risk "investments".

The result is a huge and accelerating shift in wealth-holding patterns - the difference is that increasingly larger numbers of people realize that the problem is *both* "business" and "government", that as far as the FIRE sector is concerned, we are effectively living under conditions of "State-Capitalism".

15 posted on 03/05/2012 7:11:51 AM PST by M. Dodge Thomas
[ Post Reply | Private Reply | To 7 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson