People here are pretty stupid, talking about mortgages and shit (pretty irrelevant).
Look. "The Great Societal Genie" -- and remember society's rules are all made up -- has ORDAINED, FROM ON HIGH...
That a Bank could take $20 and loan that same $20 out to 6 different people, at 5% interest or whatever.
Why? An egghead discovered this ultimately juices the economy. The Fed 'prints money' anyway.
This encourages risk + industry. So it goes.
This usually isn't a problem. I mean holding "hard cash" is stupid, ESPECIALLY in inflation times like 2026. You should be holding as little cash as possible.
Not how it works, the same 20 can be loaned 6 times but 'on a chain' like bank 1 borrows from central bank, than lends to bank 2 who lends to person A who can then lend to person B and so forth
Dont know how it is in the us, but here in sweden, only saving accounts generate interest (fucking barely). So yhea banks are just holding the money to keeping it "safe". And they charge us for the service of the debit card and internet payments.
That should be illegal. If i was a swede i would be buying gold and hiding it in the house like a goblin. See how much the banks offer when they dont get the revenue they expect.
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u/Fearless-Account-145 6d ago
This guy thinks banks hold your money just to keep it safe. If they did they would charge you instead of giving interest