Let's think this way....
Let's say I give you a banking license....
I let you margin 30:1.....
I loan you money at 0%....."All you want"....
I then sell you my short term debt at 2%.....
Mom and Pop.....give you their life savings....
You pay them 0%....nothing....and do it for years....
Which forces them to spend what they have....
For every $1000000 in MOM and Pop savings you have .....I pay you 2%....BUT the 2% is paid on 30X1000000=$30,000,000....Thus you get $600,000....
And Mom and Pop get nothing....
Is this in the interest of Mom and Pop ?
Or
Is this in the interest of banks only ?
Since taxes are the source of the 2% paid.....of
which the majority is paid by Mom and Pop as well....
What does this suggest ?
Let's say I give you a banking license....
I let you margin 30:1.....
I loan you money at 0%....."All you want"....
I then sell you my short term debt at 2%.....
Mom and Pop.....give you their life savings....
You pay them 0%....nothing....and do it for years....
Which forces them to spend what they have....
For every $1000000 in MOM and Pop savings you have .....I pay you 2%....BUT the 2% is paid on 30X1000000=$30,000,000....Thus you get $600,000....
And Mom and Pop get nothing....
Is this in the interest of Mom and Pop ?
Or
Is this in the interest of banks only ?
Since taxes are the source of the 2% paid.....of
which the majority is paid by Mom and Pop as well....
What does this suggest ?