Re:The world is sitting on a $400T financial time bomb (2017)
by gnosis89 on Monday October 28, 2019 @04:38PM
(#21381385)
False. Trillions of dollars are simply re-invested in financial activities (many of which are risky and borderline illegal as well as insured by your taxes) that serve only to generate more numbers with 0 physical contribution to the world. At least you can lift your mattress up with money underneath it or use your piggy bank as a paper weight.
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Re:The world is sitting on a $400T financial time bomb (2017)
by Fjolsvith on Monday October 28, 2019 @06:23PM
(#21382392)
Do explain where they get the interest they pay the depositor of the cash.
Re:The world is sitting on a $400T financial time bomb (2017)
by candybar on Monday October 28, 2019 @10:02PM
(#21383668)
Interest rate has nothing to do with profitability - it's just a price that balances the supply and demand of funds and on the short end, it's heavily influenced by monetary policy and on the long end, it's heavily influenced by the inflation and growth expectations. Lots of consumers borrow at very high rates and it's not because they expect to be profitable with the money they borrow.