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#13
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Yea, but most people dont conceptualize/understand how this works in practice. You end up with debt backed by debt backed by debt backed by debt. Let me give an example. Say someone takes a car loan of 10K, they buy a car and someone deposits that 10K at a bank. [/ QUOTE ] Isn't the seller typically paying off a loan? Even car dealers finance their inventory. So isn't this a zero sum? I.e. one new loan offset by one less old loan of the same value? |
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