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Old 02-23-2009, 02:00 AM
 
64,577 posts, read 66,129,695 times
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why not work for free too on your job..... no one gets paid only charity work from now on
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Old 02-23-2009, 06:21 AM
 
Location: Montgomery County, PA
2,771 posts, read 5,414,411 times
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Quote:
Originally Posted by sheenie2000 View Post
Would if we got rid of mortgages the way it is created today?

Would if I lend someone 100K for a home and only charge them principal plus a small flat rate each month to manage the loan?

Wouldn't this be better than being slaves to the elite and banksters our whole lives?
I thought that's how fixed loans worked (-;

The premium borrowers pay above the risk free rate is compensation for the credit risk that the borrower is taking on. If anything, credit risk appears to have been underpriced during the real estate bubble, which is why the banks are in trouble now.

So yes, you could offer loans on more favorable terms than the banks, but you will almost certainly lose money if you do that.
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Old 02-23-2009, 06:34 AM
 
516 posts, read 1,706,401 times
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Quote:
Originally Posted by sheenie2000 View Post
Who cares about the banks?
What about helping our community/friends/relatives?
One person makes a little money, the other person has a home that's free and clear in a short period of time. That person then has more money later to reinvest back into the community.
Are we helping our community/friends/relatives if they work for the bank that would have provided the mortgage? Wouldn't they lose their jobs and then have no income? Doesn't this philosophy completely destroy the banking industry? Wouldn't that destroy other industries? Doesn't this lead to higher unemployment? Have you heard of the domino affect?

That's okay, the one person left with all the money can just buy houses for everyone else in the country! (BTW, that was sarcasm).

Why do so many Americans want socialism? What's going on here?
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Old 02-23-2009, 06:35 AM
 
2,197 posts, read 6,592,119 times
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Private lending is going down, not up, due to the sheer volume of borrowers walking away from their mortgages. The mantra has become "I'm going to do what's best for me," which doesn't usually work in a lender's favor. A loss of trust goes hand-in-hand with the decline in ethics and sense of personal responsibility. I can understand why the banks don't want to loan money to anybody. Who knows who'll pay you back in these "all about me" times?
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Old 02-23-2009, 07:54 AM
 
Location: Barrington
41,854 posts, read 31,715,364 times
Reputation: 14078
Quote:
Originally Posted by sheenie2000 View Post
Would if we got rid of mortgages the way it is created today?

Would if I lend someone 100K for a home and only charge them principal plus a small flat rate each month to manage the loan?

Wouldn't this be better than being slaves to the elite and banksters our whole lives?
Banks use other people's money to lend to their customers.

All loans contain the risk of a default. Generally speaking, most people expect to be rewarded for the financial risks they take, otherwise it serves no purpose to lend money, to anyone.
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Old 02-25-2009, 02:26 PM
 
Location: Charlotte, NC
2,193 posts, read 4,448,163 times
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I'm just trying to think of alternatives rather than slaving our lives away to the banks. Look at history and the way money was used.

During a visit to Britain in 1763, The Bank of England asked Benjamin Franklin how he would account for the new found prosperity in the colonies. Franklin replied.

"That is simple. In the colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers.

In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one."
Benjamin Franklin

What's wrong with this method? Money is just a piece of paper. We don't need banks for oxygen or health or our means of productivity. So why do the banks control much of our productivity?
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Old 02-25-2009, 03:56 PM
 
Location: Barrington
41,854 posts, read 31,715,364 times
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I suspect you are trying to pull our collective legs, here.
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Old 02-25-2009, 05:31 PM
 
Location: Charlotte, NC
2,193 posts, read 4,448,163 times
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Quote:
Originally Posted by middle-aged mom View Post
I suspect you are trying to pull our collective legs, here.
I did not make that quote up. Benjamin Franklin said it. It's from the history books. It's real.

Why would I make up a quote that was said by Ben Franklin?

Seriously can you give me a reason why we can't do this today, it was done over and over again throughout history. You don't have to agree w/ my perspective, but the facts are real...

It has been said that the Currency Act of 1764 was the result of Benjamin Franklin's testimony to the British Board of Trade in which he explained the benefits of Colonial Scrip, which allowed the government instead of private banks to have the benefit of money creation, thus lowering the tax burden on the people. This was a complete reversal from the established British school of economics in which the Government borrowed hard money (gold and silver) from private banks at interest, and it was viciously opposed by the British banking interests for this reason.
Parliament gave permission, in some cases, for colonies to issue limited amounts of paper currency.[2] In 1770, the Province of New York permitted to issue 120,000 pounds of paper currency.
Franklin and many others thought this Act to be the true cause of the American Revolution. .
Currency Act - Wikipedia, the free encyclopedia
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Old 02-25-2009, 06:47 PM
 
Location: Barrington
41,854 posts, read 31,715,364 times
Reputation: 14078
OK. I'll bite.

Seems that you might be missing that all currency has a relative value ....this piece of paper is worth 14 chickens and 2 goats.

You might enjoy this read, The History of Money:

A Short History Of Money
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Old 02-25-2009, 07:11 PM
 
Location: Charlotte, NC
2,193 posts, read 4,448,163 times
Reputation: 1072
Quote:
Originally Posted by middle-aged mom View Post
OK. I'll bite.

Seems that you might be missing that all currency has a relative value ....this piece of paper is worth 14 chickens and 2 goats.

You might enjoy this read, The History of Money:

A Short History Of Money
From your article:

"All nations now use "fiat currencies", money which has no intrinsic value and is not backed by precious metals..... Money, as the saying goes, "is worth what everyone thinks it's worth", and that rule applies just as much to gold as to paper bills. "

When you say this piece of paper are you referring to the colonial script? If so, of course, if I printed a colonial script and just decided to try to purchase something, I probably couldn't even get a chicken. But if we all collectively agreed upon its value, then it would be worth something.

Money can be anything a people agree upon. For 700 years in England they used tally sticks, which were just pieces of wood!
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