Well, not entirely We until the last stage of the scam. Banks lend make-believe money -- which is to say that they lend money that they do not have on deposit (see marginal reserve). They lend this to people who will perhaps default; in fact the banks do not care whether people default or not; its no skin off their nose because, as I said, the money they are lending is purely make-believe. What happens when the borrowers default? Well, thats where the we comes in. We get to bail out the banks with our tax money -- you know, the stuff that WE actually have to work for and which therefore represents actual wealth. This is not only the student loan scam, but was also the real estate scam. This was where the government forced banks to lend (make believe) money to people with little or no creditworthiness (but with the right racial credentials) who would MOST LIKELY default on their loans. So then the bank ends of owning the properties, which they have effectively purchased with their make-believe money.
Posted on: Tue, 26 Aug 2014 05:24:02 +0000
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