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Based on your comment I think you may be missing one aspect: The money you get lent at the bank is the money people are investing. Both of the things you desc
by iaw 3y ago
Based on your comment I think you may be missing one aspect:
The money you get lent at the bank is the money people are investing.
Both of the things you describe in this comment are two halves of a market. There's someone borrowing money and someone lending money. The borrowing becomes more expensive because the lender has better alternatives.
- Exuma 3y agoAhhh, do you know what's funny is after I wrote that comment I went to the bathroom and while peeing I basically had the intuition they were 2 halves of the same thing, but I couldn't even articulate it. I was going to come back and try to ask again and I saw this comment. Thanks! All this stuff I've tried to learn a few times and it's just so open ended, my mind is very more technically oriented and vague hand-waving statements on investopedia drives me crazy. Other people seem to understand it so easily but after the multiple attempts that I have made, I just have given up.