The Counts Of Credit and Debt

Every loan and fee that you pay to a bank makes the bank financially stronger, while you get financially weaker.

This is because of the concept of Fractional Reserve Banking.

This kind of banking magically allows a bank to turn $100 into $900, while you don’t have the same magical ability.

For example, for every $100 in your bank account the bank can lend someone else up to $900 of your money. Of course, the bank can charge up to 30% interest [$270!], while the bank pays you only 2% interest.

To make things much more frightening, the bank will charge you a fee to store your money. Then that same bank can turn around and lend the money from the fee’s to someone else.

Every dollar that you pay a bank feeds a hungry money vampire that will sneak up and suck more of your financial life-blood from you.

What do you think? Share your comment’s regarding any post you see. Or to trade links email: jcarltonford@yahoo.com

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The Counts Of Credit and Debt

Every loan and fee that you pay to a bank makes the bank financially stronger, while you get financially weaker.

This is because of the concept of Fractional Reserve Banking.

This kind of banking magically allows a bank to turn $100 into $900, while you don’t have the same magical ability.

For example, for every $100 in your bank account the bank can lend someone else up to $900 of your money. Of course, the bank can charge up to 30% interest [$270!], while the bank pays you only 2% interest.

To make things much more frightening, the bank will charge you a fee to store your money. Then that same bank can turn around and lend the money from the fee’s to someone else.

Every dollar that you pay a bank feeds a hungry money vampire that will sneak up and suck more of your financial life-blood from you.

What do you think? Share your comment’s regarding any post you see. Or to trade links email: jcarltonford@yahoo.com

digg_url = ‘http://www.debtwarriors.blogspot.com’;

digg_bgcolor = ‘#ff9900’;

digg_skin = ‘compact’;

digg_window = ‘new’;