I do not have a problem with banks loaning people's savings...
I do have a problem with banks profiting 700%-800% from people's savings and paying 0.5% to depositors.

Read what I wrote.
Banks do not lend out people's savings.

 

Why do some people to have money and others have no money?

Now I got to read the book:
https://en.wikipedia.org/wiki/The_Intelligent_Investor
The Intelligent Investor by Benjamin Graham.


Do you think a book can help you get out of poverty?
Or people with money talk about this book, just to hide their real business?

The book says that this success does not depend on school grades, maybe neither on the IQ: It would be a good chance for me ....

I read a part of this book, but my ability to earn money has not improved at all .......

No, reading a book will not help you get out of poverty unless what you read is solid well based information and you correctly apply what you read. To get out of poverty the simple solution begins with education. Then it becomes a matter of setting goals and working to achieve those goals, as well as setting obtainable goals. Something I tried to impress upon my children is people, in general, are paid what they are worth, no more and no less. So the road to having money was to make yourself worth money to someone. So short of a winning lottery ticket the best way to avoid poverty is education with marketable skills.

Once you have some wealth the next object is to manage your finances wisely.

Ron

 

I do not have a problem with banks loaning people's savings...
I do have a problem with banks profiting 700%-800% from people's savings and paying 0.5% to depositors.

You’re welcome to start your own loan company with more generous, ie less profitable terms. Let us know how it goes.

 

You’re welcome to start your own loan company with more generous, ie less profitable terms. Let us know how it goes.

That was sort of humorous.

Ron

 

That was sort of humorous.

Ron

One of my rules of business, based on experience and observation, is to never assume you, as an outsider, have a better idea how someone should run their business. Your first assumption has to be that you’re ignorant of the details. Unless/until you can reject that hypothesis , the assumption holds.

 

One of my rules of business, based on experience and observation, is to never assume you, as an outsider, have a better idea how someone should run their business. Your first assumption has to be that you’re ignorant of the details. Unless/until you can reject that hypothesis , the assumption holds.

I like that too, not because I see it as humorous but as true.

When my company (we were employee owned) sold I had been managing my and my wife's 401 K monies. I was not bad but was not great either. When the buyer cut the checks it was like Christmas in July that year. My wife knew a financial planner who did a show at the local TV station she was a manager at and we spoke to him. Jack served us well for years till he retired and now we have Brenda who I view as a genius. Brenda has done very well for us and is worth every dime of the 1% we pay her.

All of that aside before we pulled the plug on work we looked at things in detail. We planned for retirement making sure that first we were totally debt free, we have owned our modest home for years. I went out at 63 which was about 4 years ago. There is no magic, just good financial planning. While we are not rich we are comfortable and I am good with that. We can enjoy the things we wish to enjoy. Those crying about loan rates have the freedom to shop around. Banks, for those who don't quite get it are like any business, they are in business to make money.

Ron

 

You’re welcome to start your own loan company with more generous, ie less profitable terms. Let us know how it goes.

Despite the sarcastic overtone of the comment, there are practical examples of Average Joes operating a bank.

They're called credit unions and the trick is to get enough people with enough spare $$$ to deposit their funds into a capital pool. However government employees in many large city's do have enough spare assets to set up a CU and there are several of them in the San Francisco area. The main precaution (and also a requirement for a license to operate) is to obtain federal deposit insurance from the NCUA.

I'm getting a return of 1.59% on an insured CD and the highest interest rate on a mortgage is about 3.75%.

 

I'm getting a return of 1.59% on an insured CD and the highest interest rate on a mortgage is about 3.75%.

I got tired of the pennies my brokerage account was paying me on my cash balance (and they're paying 5-10x what my bank pays), so I put $10k of it in a stock that pays an 8% dividend. The bulk of the stock in my portfolio pays a 3% dividend.

 

For what do they print money? And how can we become a part of that...

The older I get I've been reinforce in the idea that the current system only works if some people are paid a penny when they should be paid a pound.

The whole thing is a scam for most part.

 

What whole thing is a scam?

How does printed money mean that some people have to be paid less than they should? How would non-printed money change that?

No economic system works if it doesn't allow unequal distribution of wealth. Systems that have tried it on anything but the smallest scales fail pretty quickly, since the only way to have equal distribution of wealth is to divorce what a person receives from what they contribute. As soon as you do that, then far too many people opt not to contribute since it has no effect on what they receive. No society can survive with more than a small fraction of people taking that attitude.

 

People have initially changed products between them.
Then they had gold as value and wealth.

And because it was difficult to weigh the gold at every purchase, they made coins with fixed gold or silver quantity.

Since 1970 has quit gold correspondence of money.Here starts the problem and the decline.

The largest part of the money is not printed in banknotes. Are written, are scriptural.

Put a 0, press enter and the state has done more money, but they created inflation.

Velocity of money is an important aspect. It often goes down without the state raising amount of money

 

No economic system works if it doesn't allow unequal distribution of wealth.

What I'm saying is that the system can't go on without "unequal distribution of wealth" according to professionals. That being said if everybody would be paid fair the whole system would collapse.

Well at least that is what the "professionals" say (Trying to avoid politics here)

 

Cheap anything! is what makes the system go around. Remove that and the system collapses.

 

Think about what a bitch life would be without a monetary system.

 

Think about what a bitch life would be without a monetary system.

True. Doesn't make less of a generation after generation high school popularity scam though.

 

What I'm saying is that the system can't go on without "unequal distribution of wealth" according to professionals. That being said if everybody would be paid fair the whole system would collapse.

Well at least that is what the "professionals" say (Trying to avoid politics here)

Unequal distribution of wealth is not the same as not everybody being paid fairly. I don't know if that's what you are trying to equate or not.

I'm not aware of any reason why an economic system would collapse if everyone were paid fairly for the value they produce. Of course, that ignores the question of who gets to decide what "fair" compensation is.

What is the rationale for the claim that unfair compensation is necessary to prevent the system from collapsing? I've given a rationale (albeit if very brief and highly oversimplified) for why equal distribution of wealth won't work.

 

People have initially changed products between them.
Then they had gold as value and wealth.

And because it was difficult to weigh the gold at every purchase, they made coins with fixed gold or silver quantity.

Since 1970 has quit gold correspondence of money.Here starts the problem and the decline.

The largest part of the money is not printed in banknotes. Are written, are scriptural.

Put a 0, press enter and the state has done more money, but they created inflation.

Velocity of money is an important aspect. It often goes down without the state raising amount of money

And just what is it about gold or silver that has any intrinsic value or wealth?

If the problem with money and it's decline starting in 1970, then how do you explain the countless periods of hyperinflation through history?

 

True.

• All money is a pyramid scheme.
• All money is created out of nothing.
• All money is debt.
• All money is an obligation on future society.

Here we go again...

 

Under current events, here where I live in Ohio USA the minimum wage is $8.15 USD per hour. Keep in mind that is for a 40 hour week. Cities can set their own minimum if they so choose. Cleveland, Ohio has just started a movement "Raise Up Cleveland" pushing for a $15.00 minimum. This is being pushed by the SEIU (Service Employees International Union). Again, this would apply to full time employees working a 40 hour week. Initially several city leaders who are not too bright actually favored this. Looks fine till many businesses said go right ahead and we are out of here. My own suburb would be thrilled to take businesses as the exodus Cleveland.

People should be paid what they are worth or what an employer is willing to pay them. They should receive a "fair" wage but it stops there.

Ron

 

I'm not aware of any reason why an economic system would collapse if everyone were paid fairly for the value they produce..

Trace the work that goes into a banana into a store near you. Or cocoa, cocaine or whatever is being produced in a country far away from the main cost-"dumber"

Who gets paid% for what might shock you. You probably know this but... If we would pay fair price to every stage of production. Nobody would get WAY MORE rich than the rest. So they wouldn't need more modern slaves.

People should be paid what they are worth or what an employer is willing to pay them. They should receive a "fair" wage but it stops there.

Ron

I agree, However we in the first world are "REALLY" forgetting the part of our "wealth" comes from 3rd world counties where our economical logic is laughable.