How a bank “loans” really works

Mei 16, 2011 in Sonder kategorie

 

  

How do bank loans really work:

The lender goes to Magic Bank in response to the bank’s claim that it is in the business of lending money in accordance to its corporate charter. The lender went to the bank believing that Magic Bank had the asset (money) to lend. Magic Bank never tells its customers the truth that it does not have any money to lend, nor are they permitted to use their depositors’ money to lend to its borrowers.

 
Notwithstanding the fact that Magic Bank does not have any money to lend, Magic Bank makes the buyer/borrower to sign a  loan application form which is essentially a promissory note that the buyer/borrower promises to pay Magic Bank for the money (what money?) he/she is supposed to receive from Magic Bank even before any value or consideration is received by the buyer/borrower from Magic Bank.

 

This promissory note is a valuable consideration, a receivable and therefore an asset transferred from the buyer to the bank which Magic Bank enters into its own asset account as a cash deposit. In effect you created cash!

After making sure that the buyer has the ability to pay the required monthly payments (the buyer has credit), Magic Bank agrees to lend the buyer the money (cash) . Magic Bank has no money to lend but it gave the buyer a promise to lend money by way of a commitment letter, loan approval letter, loan authorization or loan confirmation letter, etc., signed by a bank official or loans/mortgage officer employed by Magic Bank.

 

In effect your promisary note “created” the money, so why should you pay back yourself?

 

Blikskottel…is diving into some deep banking evil.

 

9 antwoorde op How a bank “loans” really works

  1. lora2me het gesê op Mei 16, 2011

    The magic of the banking system is that while you have money, they will wine and dine you, but as soon as you want anything from the magic “couldron”, they will suddenly forget your name, but will definitely find out where you live and hunt you down for every penny that you still have. They will call that hunting-down process “bank fees”, “withdrawal fees”, “interest” and other magic words that I cannot find in my dictionary.

  2. monicahaddad het gesê op Mei 16, 2011

    Toe ek vir my bankier dit vertel toe gee sy net so skalksie laggie, ek dink nie eers hulle besef dit self nie….

  3. TS het gesê op Mei 16, 2011

    …sug…

  4. jjjonker het gesê op Mei 16, 2011

    Ek het al begin dink motorhandelaars is ook eintlik banke. Hulle maak eintlik hulle geld uit die finansiering van jou motor, wat hulle verskaf om ‘n behoefte by jou te skep dat jy wel geld moet leen.

    Hierdie teorie is nou gebaseer op die swak diens wat jy kry as jy die motor terugvat vir ‘n diens daarna….

  5. greatgodpan het gesê op Mei 16, 2011

    the same applies to companies like mass mart and furniture sellers etc…its no longer got anything (hardly) to do with the products…..its the finance and related insurance,warranty top ups etc etc etc that are the real products.

  6. Blikskottel het gesê op Mei 17, 2011

    Presies, die meeste mense wat vir banke werk het nie ‘n clue oor die waarheid nie…maar die bestuurders weet, dis net dat hulle stilbly want hul bonusse hang van dit af.

  7. Blikskottel het gesê op Mei 17, 2011

    Sug..never, dis tyd om terug te baklei, hou die spasie dop..

  8. Blikskottel het gesê op Mei 17, 2011

    Ek sal nie verbaas wees as die bankiers hulle betaal om mense reg in die banknet in te help nie.

  9. Blikskottel het gesê op Mei 17, 2011

    Fact: No-one has money. We all just have pieces of paper that promises some form of value. Money in today’s system is only our labour, which the banks force us to use to pay them, even though they gave us nothing. Note, we created the “money” actually credit by our promisary note, not they.

Laat 'n Antwoord

Jou e-posadres sal nie gepubliseer word nie. Vereiste velde word aangedui as *.