[jimbob]

If people didn't (1) spend more money than they make, and (2) therefore have to borrow it from banks, and just (3)saved all that they made in bank accounts, the (4)banks could not make as much money, and so would loan out less at higher rates, and those that would have borrowed (5)could not afford to borrow any money.

I don't know. I think that banks have become pirates who take and take. I personally think it would be better for most nations/economies if people worked with people to make things happen instead of people borrowing from institutions (and my goodness, there is a huge difference between how people interact with eachother vs. how institutions treat people). I honestly feel that one of the worst things in the modern era is the degree of indebtedness people are in to their respective institutions, and usually only because they're addicted to buying beyond their means!!! (oooh.. gotta have that DVD player, that brand new car....)

1) people spending more money than they make results in/is deficit/debt spending. I don't know why our current society believes that this is a good idea, but it sure is addicted to it. Look, if someone needs a car, they should buy within their price range or save up until they can afford it. Constant interest payments aren't good for people!

2) that said, there are times when large investments should be made (ie starting a business). but this doesn't necessitate the existance of banks, it actually requires somebody with liquid assets, eg. a business partner. When loaning money, the bank is just a business partner who gets paid interest for not showing up to work!

3) with the paultry interest rates and the amount of service charges, the only thing the bank has over my trusty mattress is a few armed guards and a vault door! People should save some money, but they should also invest some money. They should not give any of it to the banks, because their money ends up with shareholders - instead they should invest so that they are the shareholder! But hopefully they can be the shareholder of an organization more productive/valuable than just a money-grubbing bank

4) this assumes that banks are a required institution... they're just a handy institution, not a requirement for a healthy thriving economy.

5) and so people would have to band together to start up capital projects, businesses, etc. etc.
Hmmm people working together, people dominated by a bank, people working together, people dominated by a bank....

I just think there are some weak/sick points in how our modern economies run, is all.

[ February 14, 2003, 01:00: Message edited by: jimbob ]