ByteOnBikes@discuss.online to A Boring Dystopia@lemmy.world · 1 month agoBorrowing money against their stuff to get more stuff to borrow money...discuss.onlineimagemessage-square206linkfedilinkarrow-up11.48Karrow-down111
arrow-up11.47Karrow-down1imageBorrowing money against their stuff to get more stuff to borrow money...discuss.onlineByteOnBikes@discuss.online to A Boring Dystopia@lemmy.world · 1 month agomessage-square206linkfedilink
minus-squareJcbAzPx@lemmy.worldlinkfedilinkEnglisharrow-up2·1 month agoThey can get interest rates that are lower than the tax they would pay. Often, they hardly pay any interest at all.
minus-squarehexabs@lemmy.worldlinkfedilinkarrow-up2·1 month agoWhy do banks do this? Sounds like a favor.
minus-squareJcbAzPx@lemmy.worldlinkfedilinkEnglisharrow-up1·1 month agoWell, many of the people that do this have large stakes in banks.
minus-squaresmeenz@lemmy.nzlinkfedilinkarrow-up1·1 month agoBecause a small rate on a large loan is still a lot of income to the bank
minus-squareThirdConsul@lemmy.ziplinkfedilinkarrow-up1·1 month agoAnd of course because banks can create more money than they have.
They can get interest rates that are lower than the tax they would pay. Often, they hardly pay any interest at all.
Why do banks do this? Sounds like a favor.
Well, many of the people that do this have large stakes in banks.
Because a small rate on a large loan is still a lot of income to the bank
And of course because banks can create more money than they have.