Asset Based Loan

Since up to 90cents out of every dollar loaned technically doesn’t exist(in hard asset or currency form)and the fed continues with a 0% interest rate to promote growth and lending.Would it be honest to assume if we had a more stable lending system(ie say 80% of loaned money had to acctually be from/in the bank) and interest rates being higher as a result.Wouldn’t this promote more saving and less spending witch would equall less consuming,Higher interest rates(less door to large amounts of money) would make it harder to reliable a larger home loan(you could but it would be more surrounded by the persons financial means).And with less non existent or electronically made debt,some one who might currently be eligibale a 4,000sqf house would end up with a 1500 sqf house.Someone who might be able to afford car payments on a new excursion might instead pay cash for a camry.Would this work since most of our growth is just riding the wave of an inflationary bubble similar to the 20’s where only a part of the required money was looked-for to make the growth and investment.Sure some manufacturing jobs would have to come back to make the econemy more stable,but we wouldn’t have as much of a consumer based econemy.Not that people would be in worse income conditions.A lot of people don’t own their own cars or houses anyways,they just reckon they do but in reality the bank does and they just make payments and get to use it(fuelled by simple and low-cost acces to money).So I don’t see it as a step down having a upset not as nice or huge but owning it outright instead of being owned by a bank.You may not live in a house thats 4000sqft but you may never have to worry about foreclosure(or for not as long).

for the banking aspect replace the word money with debt

it would depend on what took its place.

it is clear that it is exceptionally corrupt – but there are lots of equipment that are corrupt.

Category: Asset Based Loan by admin