Topic: If Banks make money out of loans then they should reward those who borrow - page 5. (Read 862 times)

Perhaps the language is misleading, but if you only look at its negative side, I think it does not accurately reflect the entire contribution of the banking system to the economy. I can agree that there are many traps in the banking system. The banking system was created to take advantage of users, but it seems to be a part of life. From the traditional things we know, it has its own problems, such as being too centralized and can be considered as control. And that's really a disaster if the leadership is dominated by people who like to dominate and dominate. People usually don't pay much attention and also consider banks as a hidden channel. Partly it may be due to perception. I know that some people still choose the banking system as an investment tool to earn % interest rates regardless of the inflation rate, but the general standard at present is that personally, when I know crypto, I honestly use banks, aviation is not a priority channel.

Borrowing money is that simple but to pay back is that hard to do so for those that borrow and pay back should be acknowledge
For a person to borrow money and pay he/she must have make good of it to extend of getting money to pay back in some case they will rather squander the money and might not have anything to pay back
Some financial organizations that borrow money have to go out to struggle and get something back in form of collateral
So for those that borrow and pay back should be rewarded for work done because it must have been hard work to borrow money and able to pay back

It is not about being on the side of the banks, but, I mentioned it in another similar context, mortgage loans work and have made society advance, what does not work correctly is the flawed environment that surrounds them, asking for a loan at "x" years for 3%, 5%, it is not bad, it is an opportunity that some like, or it is their only option, there is no other way.

It is the economy in general, the politicians, the governments that when financial crises come, the small lenders are what take the big hit, as happened in 2008.

That's how banking system has been and that's the way for them to make money and there is no way banks rewarding anyone.

But just wants to clarify if your friend has taken loan and he is in debt it's his inefficiency to manage the funds or he has failed in business or financial aspects. Let's be reasonable we know banks are fraud and just suck out money from normal peopl but at the same time let's not justify our shortfalls and failures on banks.

You're getting a whole lot of concept wrong here and it's sad to know that you've just displayed that you don't know how the financial systems work and you know little or nothing regarding how banks get profit from her customers.

Although most banks has their limitations but you should know that the primary motive of any bank is to make profit and so they render the services of keeping your money safe and creating ease of withdrawing it whenever you are in need of it. While your saved money could be used for business purposes like lending it out or even investing it in stuff, whenever you are in need of your funds, the bank always releases it to you which means that they are keeping to their side of the agreement.

If for any reason you take a look from a bank or acquire a mortgage from them, based on the agreement reached you are expected to pay off the stipulated amount and I feel that not reasonable to destroy the collateral you used in obtaining a loan from the bank just because you don't want them to cease it.

Banks serve a peculiar problem and bitcoin and any other cryptocurrency are developed to solve their own problem and so I feel that diminishing one of them just so the other could be seen as a better option is quiet unreasonable.

I really think that people should appreciate banks for the important roles that they play in keeping our money safe until when we need to spend it, they don't tell us that money is not available when we want to withdraw. Infact banks are the safest place to keep our money and have peace of mind that we won't be robbed or lose it, very convenient to pay for goods and services directly from our bank accounts. Bank accounts are more convenient to make payments from than crypto wallets, because every business person has a bank account but very few have crypto wallets, besides banks transactions are faster and cheaper than cryptos.

It'll be very unfair to borrow money from a bank and not have the intention of repaying, if the terms and conditions were not favourable, then why collect it in the first place?

Banks are crooks indeed but you are not right with your narrations, you are just contradicting this and misplaced facts. Take for instance, if you spend your crypto, will you earn again for it, that is how banks primarily work, debt is different from credit, and assets are different from liability, it's your friend who should plan well for his finances, and perhaps work more to be capable. There is no way banks will be paying you for what you spent (unless they run a promo) or when they borrow you money, and for the latter, you owe them and you must pay what you owe. To sign in for a loaning agreement means that you are bound to pay, and not only that, you are bound to pay the agreed amount and with agreed conditions including the specified time periods. Failure to do that means that you might be penalised.

Borrowing is not the same as investing, it is when you invest in the banks that they pay you, just as crypto will only earn for you when you stake or invest in it, not otherwise. Not crypto operators even do otherwise. But the issue with banks that you didn't talk about is the fact that they pay peanuts to the depositors' money with them. They cheat when money is in their custody and squeeze money out of people who borrow from them (what they use the depositor's money for). Well, it is our choice to continue keeping our money in banks, crypto and other investments are there for everyone now.

There is always a cost you pay for borrowing and that is 'interest'. If borrowing is made free the system would not be regulated and the lender might gain nothing from lending out his hard earned money. Even the banks pay their customers some interests for depositing their money with them (these interests often come if the money is saved over a long period of time). If on the other hand the customer wants to withdraw from the banks in form of loans, a higher interests rate is charged for that purpose. Borrowing is a choice,  no one is going to point a gun on your head to borrow against your will. You can decide to avoid patronizing the banks and save yourself some costs because the financial institutions are in for business. You'll get rewards from borrowed funds when the money borrowed is put into good use and you begin to get returns from it, Yea, that's the reward.

That is a choice and decision of the bank manager. It's not criteria, they help citizen store and keep their money to safety what do they gain in return? This is the part where giving out loans started. Instead of keeping the money in the bank without any good use of the money, they started giving out loans to reputable individuals and companies with percentages so that they could make some profit out of it.

I personally have no active bank account right now as my old account was closed due to inactivity and no balance for like 3 months I guess. My debit card supposed to expire by 2027 but yeah it was already blocked and that is how it works, once they get nothing from you they'll do the right thing. But it's okay I have alternatives like e-wallets not owned by a bank and a crypto wallet that is decentralized and doesn't need a bank as well. Banks don't like poor people therefore poor people don't have access to banks.

Banks offer time deposit, you can earn small amount APY by stake your fiat for a year or more.

Bullshit, I don't believe you can close your bank account, that's not possible since you're only allowed to withdraw all of your money and leave the balance settlement. Do you buy a coffee, pay bills etc using cryptocurrency?

That depends on the agreement, there's no change in flat/fixed rate, but if it's float rate then there's a chance, it could be lowered or higher.

I just skipped after this and stopped BS, if your friend is in debt means he took a loan and spent it wrongly, and if banks are making money then its their business and if you don't want to take a loan then don't take a loan but blaming the system after taking a loan and can't able to pay back.

Well, bank actually give rewards to people who utilize their credit cards and pay back the due amount on time and your credit score gets better so in future you can get loans for less interest.

Yes people are frusturated and mad no question about that ....but how the money is created was like this....you want build factory you go the bank and borrow money so then your factory was given jobs to people and then Money went in circlation thats how most of money was created at first place.
But yeah Banks should reset all the debts and debt forgiveness otherswise our world gona get ugly

Yes If money doesn't existing without someone borrowing this then each person who i use credit or debt Will be rewarded by Banks.
My friend is full debt with mortgage but i told Him to not worry you are just victim of bank and financial system you are not only one.
I Understood allready that we Are all just victims of scam and that's ITS not If but when people will just say banks we don't need you If we don't get rewards.
Becouse when i stake crypto i get profit but banks don't give nothing so i see people wake up and fight against financial scam and Understood we Are just the victims of crimes i don't use Banks anymore and told my bank you gona share your profit with me or get Lost my face.
So i closed my bank and full crypto and Im happy so many people do the Same now becouse everybody Understood that money comes from the debt so more we take debt more money created so i should get rewards for taking debt then If not Im out of financial system not just me a lot more people becouse the system made us victims.
I told my friend tell bank that it's a scam and his victim of bank scheme so all his friends tell Same now to their Banks and flahing front of bankers binance atm debit card.
Now the Even bankers himself might Understood ship is sinking and fastest they get on crypto and btc the better changes to save themselfes becouse this system not working i told my friend before bank Takes his house burn it down or beat up so the bank Will get broken House.
That's how it is people now Understood If they been treated bad they fight back ....
It's unfair they made mortgage rates higher without notice first so we are victims and If anyone struggle financially they now Understood it's the system and we all victims ....Same goes with cars people now smashing it up cars before give to financial swimdlers