Bankers speak of selling money. But the money marketplace it isn’t like a marketplace for goods in which prices are determined by supply and demand. Money prices are determined by how much money you already have. If you have a lot you can get cheap loans because you represent very little risk. If you don’t have any the price is very high, perhaps well over 20% annually on a credit card cash advance, and even higher on a payday loan. Finance, a purely parasitical industry that produces nothing, has become a large component of the American economy because they are for the most part, as individuals or as a government, a debtor nation.
Posted on: Thu, 11 Jul 2013 05:48:43 +0000
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