Re: Quotation of the day



John Larkin wrote:

Eeyore wrote:
John Fields wrote:
John Larkin wrote:

Banks don't *create* wealth, unless the loan facilitates something truly
efficient and productive.
---
Nonsense. They create wealth by charging interest.

Bollocks !

You *don't* create wealth that way. It's no different to privatised taxation.

Banks *do not* provide an output of greater value than the input, i.e. they do
not generate wealth.

That's economics 101 !


Banks can help create wealth by financing businesses. Big lending and
micro-lending can both be useful, and in some situations are necessary
to get things going.

There will always be a pool of capital. The banks simply institutionise it. In many
cases they act to restrict business endeavour in fact.


But the interest they charge is just shuffling, and doesn't create
wealth.

It devours wealth. It's no better than a casino. The same goes for the Stock Market
and Insurance.

Graham

.

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