How Much Money Can A Bank Loan You

How Much Money Can A Bank Loan You

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How Much Money Can A Bank Loan You – “Does the bank give you money?” It may feel strange to ask that question. (Maybe not for the readers of this blog!) However, we are reminded every day about what they are doing with topics such as “bank lending”, “British bank lending fell in 2012” and the government’s policy to “get it”. Banks give more loans” but do they give loans?

Lend: give (someone) the use of (something) with the understanding that it will be returned: Stewart asked me to lend him my car; Photos are provided for each museum

How Much Money Can A Bank Loan You

How Much Money Can A Bank Loan You

1: It must exist before someone lends it (otherwise how can it be given?) 2: The act of lending something is transferring it: from one person to another.

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The above seems to be the ideal conditions for a loan. As we will see, the “loan” of the bank is not satisfied. But first, let me give you an example of a real loan that meets these two criteria:

1 and 2 are satisfied. Ask first, then I transfer from me to you. Then you transfer it back. Therefore, we can say that the pen loan is made by me and then honored by you.

Now the bank called the loan, but I called it “loan”: inverted commas when the bank “loan” pen, this indicates our suspicion that the loan does not meet my two criteria. An inverted comma can be omitted if the opposite is true. Let’s see. Here are the banks that will “loan” you:

The above procedure does not satisfy condition 1 or 2. The pen does not exist before the “borrowing”, so condition 1 is violated. The act of “lending” does not involve transferring an existing pen from the bank to you. This includes creating new pens “out of thin air”, if you will. Therefore condition 2 is still violated. We are justified in using inverted commas, our suspicions are confirmed. Banks don’t give pens: they “lend” them. Their “pen loan” has nothing to do with the popular use of the word “pen loan.”

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Banks do not have the ability to create pens. But it also has a special power granted by financial services organizations: the ability to create new digital money in the form of new bank deposits. It looks like this:

Similar to our hypothetical example of “lending a pen,” in the case of a real bank “lending,” the bank doesn’t give you money: they “lend” it to you. Their word “lending” has nothing to do with the word “lending”. By using their power to create new digital money, banks can and will create as much money as they deem profitable. Often so much new digital money is created that the economic failure of the system occurs. More than 97% of our money in circulation is new digital money, new bank deposits, created by a process similar to the cartoon above.

My cartoons hope to represent in a more colorful way what an accountant might see in a bank journal (accountants can’t see overlapping commas!):

How Much Money Can A Bank Loan You

The above is called double-entry bookkeeping and tracks the creation and destruction of new digital money, among other things. So banks do not lend – they “lend” it, i.e. Create it – based on strange rules that are scattered throughout many policy documents and if ever discussed in the media. You may think that I am working on a trivial and unimportant topic – banks used to refer to the process that is not generally understood of “lending” with the word “lending”. But what? If the bank wants to use the words indirectly, so be it.

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The problem is that when you say “borrow” there is actually a great confusion, because people cannot confuse the two meanings – often including politicians and economists, its words are called “contradiction” and / or logical contradiction – even if they know it. Loans are actually “debts”. (And most people don’t know this!) Most of us are not financial experts and politicians, economists and the press all get it when they say banks. Credit, actually lending as it is generally understood – does not involve the implementation of a strange option, which is called lending for some reason, but actually has nothing to do with it.

Also, if this is a democracy, society will have the way we think? Should banks be allowed to create the money supply for private profit as they do today? Imagine the following conversation:

Does society need money to build schools, hospitals and “green” jobs? Need money for arms trading, financial speculation, and fracking? Which of the following increases profits for banks? For this, a new bank digital currency will be created.

“Finance and finance provide a central evaluation system in people’s lives. Changing the rating system for the better is a priority for people with many different interests, not just those with a special interest in finance and finance.

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Confusion about what banks really do must end – we deserve an economy we can understand.

Tags: bank loans, credit creation, financial services authority, Fractional Reserve Banking, full reserve banking, James Robertson, financial reform, positive money When you go to the bank for a loan, the loan officer will ask you many questions. Some of these questions may seem obvious, but they are all important in determining whether you qualify for a loan. One of the most important questions that loan officers ask is, “What is the purpose of the loan?”

The answer to this question is important because it will help the credit officer determine what type of loan you need. For example, if you are looking for a loan to buy a car, the loan officer may recommend a car loan. However, if you are looking for a debt consolidation loan, your credit officer may recommend another type of loan.

How Much Money Can A Bank Loan You

Knowing the purpose of the loan will also help you decide how much money you should borrow. For example, if you are looking for a loan to buy a car, you need to know the price of the car. If you are looking for a debt consolidation loan, you need to know the total amount of debt you want to consolidate.

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Once you know the purpose of the loan, the next step is to decide how much you should borrow. This information helps loan officers determine what type of loan you qualify for and the interest rate. How much you will pay for those loans.

Once you have decided on the purpose of the loan and the amount you want to borrow, the next step is to fill in the loan application. The loan application will ask for your personal information, such as name, address , and social security number. The loan application will also ask for your financial information, such as your income and expenses.

After you fill out the loan application, the next step is to send it to the loan officer. A credit officer will review your application and decide whether to approve your loan. If your loan is approved, the loan officer will give you a loan agreement. The loan agreement describes the terms of your loan, including the interest rate, repayment schedule, and other important details.

Once you have signed the loan agreement, the next step is to make your first payment. Your first payment amount is determined by the terms of your loan agreement. When you make your first payment, you will start making monthly loan payments.

Now You Can Use All That Startup Stock To Get A Bank To Loan You Money

If you have questions about your loan or the bank’s loan application process, be sure to ask a loan officer. A loan officer can help you understand the process and answer any questions you may have.

It’s no secret that getting a loan from a bank is difficult. The process can be time-consuming and frustrating, especially if you don’t know what you’re doing.

One of the most important things to remember when applying for a bank loan is preparation. You need to know exactly how much money you need to borrow and have a clear idea of What you will use the loan for.

How Much Money Can A Bank Loan You

This is the most important question to ask yourself before applying for a bank loan. You should have a clear idea of ​​how much you want to borrow and why.

Loans: Banks Or Credit Unions Can Loan You Money. You Pay The Money Back A Little At A Time. They Charge You Interest For The Loan.

If you do not know how much money you need, consult a financial advisor. They can help you figure out how much money you should borrow and what your options are.

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