Thanks, I’ve read it. None of what you said is wrong and none of it refuted what I said about it all either. They’re not mutually exclusive.
Plenty weren’t simply “risky loans.” That’s corporate speak. Technically true in all instances but not incriminating. After all, what loan could be riskier than one made to someone who doesn’t exist etc.?
But the important part is that you’re not cross referencing that with how money is actually created and destroyed these days or, it would seem, or acknowledging the level of fraud involved on the issuing of the mortgages, bundled up into those MBSs.
Therefore, if you borrow £100 from the bank, and it credits your account with the amount, ‘new money’ has been created. It didn’t exist until it was credited to your account.
This also means as you pay off the loan, the electronic money your bank created is ‘deleted’ – it no longer exists.
The BoE is the UK fed and its not going to be different in America. Both countries have the same monetary policy.
Money is created - human labour - money goes back and is destroyed.
Back to the banks, they created money when they issued those mortgages. They wouldn’t me mortgages otherwise. As a bank, in a system of fractional reserve banking, they’re as good as money. Those mortgages didn’t get parked on some balance sheet in the sky. Not trying to be patronising but to really crystallise it.
When the people couldn’t pay it off with either their own work or someone else’s, either through being dead or just not being able to pay, the money already created, already in the system, vanished. Just like if it turned out the bank of England had no gold at all, back in the gold standard days.
Thanks, I’ve read it. None of what you said is wrong and none of it refuted what I said about it all either. They’re not mutually exclusive.
Plenty weren’t simply “risky loans.” That’s corporate speak. Technically true in all instances but not incriminating. After all, what loan could be riskier than one made to someone who doesn’t exist etc.?
https://publicintegrity.org/inequality-poverty-opportunity/at-top-subprime-mortgage-lender-policies-were-invitation-to-fraud/
https://www.theguardian.com/news/2022/feb/21/tax-timeline-credit-suisse-scandals
But the important part is that you’re not cross referencing that with how money is actually created and destroyed these days or, it would seem, or acknowledging the level of fraud involved on the issuing of the mortgages, bundled up into those MBSs.
https://www.bankofengland.co.uk/explainers/how-is-money-created
The BoE is the UK fed and its not going to be different in America. Both countries have the same monetary policy.
Money is created - human labour - money goes back and is destroyed.
Back to the banks, they created money when they issued those mortgages. They wouldn’t me mortgages otherwise. As a bank, in a system of fractional reserve banking, they’re as good as money. Those mortgages didn’t get parked on some balance sheet in the sky. Not trying to be patronising but to really crystallise it.
When the people couldn’t pay it off with either their own work or someone else’s, either through being dead or just not being able to pay, the money already created, already in the system, vanished. Just like if it turned out the bank of England had no gold at all, back in the gold standard days.