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I'm not sure that I agree with this, because that would make most banks thieves. The operating model of a bank is to take depositors money and loan it out at a
by smileysteve 2y ago
I'm not sure that I agree with this, because that would make most banks thieves.
The operating model of a bank is to take depositors money and loan it out at a higher interest rate; Then there are investment banks that "hedge risk" and seek higher return ratios - ie what happened to Bear Stearns in 2008 (a reminder that nobody went to jail for 2008).
- echoangle 2y agoBut surely the bank gets permission beforehand?
- anonuser1234 2y agoExcept there are laws in place to limit how much can be lent out (Google "federal reserve requirements").
- Sirizarry 2y agoYou seem to be missing the concept of consent in your analysis. I’d say it’s pretty foundational.