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Aside: > members of the lending community This is an interesting way to say "banks".
by decimalenough 1y ago
Aside:
> members of the lending community
This is an interesting way to say "banks".
- rahimnathwani 1y agoThe majority of US mortgages are originated by non-bank mortgage companies.
- dietr1ch 1y agoWasn't lending money with interest restricted to banks to control how much money is created? I'm guessing they're still regulated, but it still seems weird.
- rahimnathwani 1y agoHave you never held a savings account or bought a bond? Those are both ways to ‘lend money with interest’.
- dietr1ch 1y agoYes, but managed by banks. That's my observation, it's new to me that non-banks are allowed to lend with interest.
- rahimnathwani 1y agoIf some company wants to lend money to an individual or another company, the risk is borne entirely by the lender. Apart from regulating collection practices and fairness in consumer lending, there's little reason for regulation. Bank regulations in most countries are usually focused on deposits (i.e. banks borrowing money). Because a poorly managed (or unscrupulous) bank could cause problems for parties other than the bank. Nice article about money creation: https://cepr.org/voxeu/columns/banks-do-not-create-money-out-thin-air https://cepr.org/voxeu/columns/banks-do-not-create-money-out...