Re:I've Paid $18,000 to a $24,000 Student Loan, and I Still ...
by mhuffman on Sunday May 20, 2018 @10:21PM
(#17115795)
> people deposit money at a bank, and the bank lends (gives!) some of that money out to (e.g.) students
People deposit money at a bank and the bank lends out 10 times as much!
Granted the "new money" is destroyed as the principle is paid back, but its new money out of thin air -- and the interest is real money!
Here is a more easy-to-read version[1]
[1] https://www.investopedia.com/articles/investing/022416/why-b...
I’m not sure how you get this from your reference - people deposit money at a bank, and the bank lends (gives!) some of that money out to (e.g.) students. The “creation” comes from both the depositor and the borrower thinking they have the money.