Re: Why do the banks need my money? (CD offerings)

From: Robert J. Kolker (robert_kolker_at_hotmail.com)
Date: 07/27/04

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Date: Tue, 27 Jul 2004 03:50:16 GMT

Mason A. Clark wrote:

> Why do the banks need this money? Is it just a
> marketing scheme to get new depositors? But if
> so, why do they need new depositors? Can't they
> make loans to create money and depositors?

They pay for the use of your money at five percent and lend it out at
ten percent. Sounds like a money-maker to me. Banks cannot legally make
arbitrary amounts of credit available to borrowers.

Bob Kolker

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