Loans become worthless when inflation picks up. Great for the borrower.
Loans become worthless when inflation picks up. Great for the borrower.
Precisely. Any loans outstanding get paid back with cheaper money. This is why I believe banks want to get consumer loans off their books as quickly as possible.
Precisely. Any loans outstanding get paid back with cheaper money. This is why I believe banks want to get consumer loans off their books as quickly as possible.
On the other hand, it's all out-of-thin-air joo money they loaned in the first place.
On the other hand, it's all out-of-thin-air joo money they loaned in the first place.
Agreed. That's what makes the entire system ridiculous. Banks don't loan anything at all. They have no potential collateral loss. Yet they pretend they do. Why the charade to check your credit worthiness or to put up collateral?
All loans get wrapped up into derivative instruments and sold off. 2008 all over again.
Agreed. That's what makes the entire system ridiculous. Banks don't loan anything at all. They have no potential collateral loss. Yet they pretend they do. Why the charade to check your credit worthiness or to put up collateral?
All loans get wrapped up into derivative instruments and sold off. 2008 all over again.
(post is archived)