Malkevin wrote:CitrusGender wrote:Malkevin wrote:And we wouldn't have boom and bust economies like with sub prime mortgages, world economy is still fucked from that - cheers Shylocks.
Sub prime mortgages was just the fault of people getting too aggressive with their investments. Although you are correct IF WE DIDN'T HAVE MORTGAGES, WE WOULDN'T HAVE SUB-PRIME MORTGAGES: But I can't imagine you would enjoy paying for a fucking house from out of pocket cash now, would you?
Credit is probably one of the best inventions that could ever exist due to the fact that it makes it possible for people who don't have money to be able to get the capital to make money. Imagine if we didn't extend credit, we would still have major projects of society reserved to rich people/ people who were friends of rich people. It's literarly the equalizing force.
Oh I don't know, pay rent?
What's the difference between paying a monthly amount to the landlord that owns your house compared to the bank that owns your house?
Also houses would be more affordable if their price weren't so over inflated from banks and investors using them as collateral and pushing the prices up so they can keep up the illusion of constant infinite growth
How is paying rent on a personal home a system that scales to "I invented a new widget and need money for machines/employees/advertising/a workspace/etc to start producing them."
DemonFiren wrote:i can't trust any system that makes money from practically nothing
????
If you buy a piece of ownership of my Burger Shop, and I use that money to open a 2nd Burger Shop and research blorble sauce, those are very real and tangible things. And if my business plan is sound and Burger Shop starts selling more, it will become worth more, and the piece you bought will become worth more.
The other half of "its not nothing" is that if everyone hated slime burgs and I sold none and went out of business the piece of Burger Shop you bought is worthless. You took on risk.
>but that is just gambling!
For the average person who doesn't have time to research all these companies in depth it probably is sure and you'd probably be better off just buying index funds. Like Citrus, said, most traders fail to beat the market.