Saturday, February 6, 2010

Make Money Reliably Forever Or...

From I.O.U. via The Agonist:

Make Money Reliably Forever Or . . .

From I.O.U.: Why Everyone Owes Everyone and No One Can Pay.:
This is how it’s supposed to work. A well-run bank is a machine for making money. The basic principle of banking is to pay a low rate of interest to the people who lend money and charge a higher rate to the people who borrow it. The bank borrows at 3 percent (say), and lends at 6 percent, and as long as it keeps the two amounts in line and makes sure that it lends money only to people who will be able to pay it back, it will reliably make money forever.
Reliably make money forever! Instead the banksters got greedy, decided that a return on equity of anything less than 25% per annum was unacceptable began their binge of serial acquisitions and soon we all crashed headlong into a crisis.

Me? I'd rather make money reliably forever. Boring is good. Singles win championships and all that. But hey, I'm not a greedy, megalomaniacal, ego-centered fucktard.

Sean Paul Kelley February 6, 2010 - 3:33pm

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