Topic: Why the banks dont give free money? Why they loan it? - page 7. (Read 8772 times)
Why should the bank give out free money that just do not makes much sense at all. The bank also needs to make money to keep there company running so giving out free money is not a option at all.
Lol banks have employees and their owners would need to be paid. so they borrow the money another customer to customer and benefit from interest earned and that is an advantage in the can by the bank? profits that used to pay employees. usually there are other ways to profit from bank
It is true that banks are basically loaning money into existence. The whole economic model currently is based on the fractional reserve system, which basically allows commercial banks to control the currency supply as well as the government.
But they wouldn't want to overinflate the currency base either. If you give free money away, then it's basically hyperinflation. Banks don't want that to happen because they are using fiat as well.
But they wouldn't want to overinflate the currency base either. If you give free money away, then it's basically hyperinflation. Banks don't want that to happen because they are using fiat as well.
I think loan is a scam. An economy needs, only, free funding and a tax system and nothing else. Do you agree?
What are you trying to say? Loan is not a scam its a chance that you can use your money that not yours but you can use it in emergency or daily need so why do you think it is scam? And why the banks dont give money ? Ifthey give money how they earn. They working for money to earn money not to give money to others.It's a scam in the sense that they give you money that you won't be able to give back and make you spend it. That's the way the 2008 crisis happened.
I think loan is a scam. An economy needs, only, free funding and a tax system and nothing else. Do you agree?
What are you trying to say? Loan is not a scam its a chance that you can use your money that not yours but you can use it in emergency or daily need so why do you think it is scam? And why the banks dont give money ? Ifthey give money how they earn. They working for money to earn money not to give money to others.
If they give free money, no one else will work, and so the whole system collapse. Next utopic economical idea please !
Bank operate for profit and maybe all of the business around the world, so obviously they would not give free money. The money they lend are the from depositors of their bank who also receive a small amount of interest income per annum. It is a just a matter of utilizing depositors money at their advantage.
I think it is an advantage to themselves, they lend money to the user and will probably return it with interest money
Simply because theirs no such bank institution will give free money to others because they cannot get profit with it, if banks really give free money i think they will get bankrupt because money is profit for them and they are not looking tpoo give it free,
I think banks do not really give free money and yes instead they lend it to people as loans because this is the only way that they can earn money or earn profit. This is the only way how they can circulate the money on this type of business. Loans are actually encouraging a big amount of profit just like lending. The interest for every monthly payment if you are going to compute them this is really high enough.
I think loan is a scam. An economy needs, only, free funding and a tax system and nothing else. Do you agree?
Of course I don't agree, I call this bullshit. Why would banks give free money? First of all nobody gives anything free to nobody. Second you don't know anything about banking and taxing systems, banks work that way and make money. They accept your deposit and give you %10 per year, then they give loan (your money) to other people and charge %40 or more per year. That's how they make money.
thats how their business work my friend.. thats how they get their income 
They wouldn't be called banks for nothing. If they're giving away money, might as well call them a charitable institution. And where would banks get the money that they intend to give for free? Although sometimes they do that as a promotional campaign, but that is to entice more clients to use their offered services. They give away travel and vacation sprees as prizes when you apply for loans.
Imagine what will happen if bank give free money, all of human will become lazy and the economic of the country will stop
Yeah it just does not make sense for the bank to give out free money. They have to pay there bills and the people that work there ass well so they have to make money so that is why they give out loans.
Banks right now if you are not a worker or employee of the company you cant get any loan from any banks.. they sure that you have a job.. so that they can deducted some % of your monthly job..
And i think this is not a scam.. they are just want to make a profit thats why they putting a interest for each loan..
And i think this is not a scam.. they are just want to make a profit thats why they putting a interest for each loan..
As miners were needed to have a successful transaction of bitcoin, lot many employees were used to make the banking system run perfectly. Miners earn through transaction fee. Here in banks they use the different schemes and with those interest and profit employees will be paid. This is the reason why bank don't give anything without certain percentage of interest.
The banks are businesses so they will not give out money. They are loaning it for a profit which is fine. The problem is when banks make mistakes or defraud the people and instead of having to take responsibility, they get bailed out by the government.
Why would the bank give out free money? I just do not see any sense in doing that, if the bank gave everyone free money then there would be no reason to work.
The bank needs to make money to so they loan it.
Banks basically make money by lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt securities they own, and pay interest on deposits and short-term borrowings. The bank needs to make money to so they loan it.
Why would the bank give out free money? I just do not see any sense in doing that, if the bank gave everyone free money then there would be no reason to work.
The bank needs to make money to so they loan it.
The bank needs to make money to so they loan it.
It makes not much sense if you give somebody money and get the same amount back.
You have the risk of losing it without any advantage for you.
The interest has to cover your risks.
You have the risk of losing it without any advantage for you.
The interest has to cover your risks.
Exactly described, just think of lending our bitcoins. Why we were lending our bitcoin after getting proper collateral. The same is taking place with the banks in different schemes. It is beneficial to users as well banks.
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