|
|
|
|
#1
08-09-2007, 03:01 PM
|
|||
|
|||
Re: Why do banks give loans?
"Why would they want to risk their $$$ in the volatile markets when they got a sure thing?"
Lol, I think we're learning that it's not such a sure thing when dumb bankers make dumb loans. "Oh Bernanke, please bail us out!!!" 
|
|
#2
08-09-2007, 03:46 PM
|
|||
|
|||
|
Re: Why do banks give loans?
[ QUOTE ]
"Why would they want to risk their $$$ in the volatile markets when they got a sure thing?" Lol, I think we're learning that it's not such a sure thing when dumb bankers make dumb loans. "Oh Bernanke, please bail us out!!!" [/ QUOTE ] Excellent point. Should not have said sure thing. My point was that through the use of fractional reserve banking, they are loaning out several multiples of what they actually have in physical deposits. Hence their potential profits are a lot more than what the stock market can offer them.
|
 |
|
|
Hybrid Mode
