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The first thing I want to ask when I hear something about easy money, is: "Then what stops everybody from doing it?"
by dimitar 17y ago
The first thing I want to ask when I hear something about easy money, is: "Then what stops everybody from doing it?"
- bobbyi 17y agoIn this case, the government. This article shows what would happen if everyone were able to operate the way the big banks do now.
- dpatru 17y agoI think everybody is not doing it because 1) most people don't understand it, 2) it's not easy to form a bank, and 3) although banks can easily get money for loans, they will be shut down if the loans are not paid back. Because new money is created whenever a loan is created, the cost of money is artificially low. This discourages savings and encourages debt. So even though there are massive amounts of money to be made with a bank, I think that it's pretty hard to come up with the capital needed to open a bank. In this sense being a banker is like being a drug dealer. You can make a lot of money, but you can't consume what you sell. If you do, you end up being just another customer, a buyer not a seller.
- deleted 17y ago[deleted]
- chrischen 17y agoI'd say that $1 billion in initial capital's got to stop at least a couple people.