Why are banks a scourge on society and need tighter regulations. ?

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  • Zirp
    Lv 7
    4 weeks ago

    They convinced the gullible that a government creating money will only cause inflation, and thus gained the monopoly on creating money.

    the problem is that if they create less than is paid back, the economy will shrink.

    the problem is aggravated by the demand that credit be paid back with interest

  • Logan
    Lv 4
    4 weeks ago

    Prior to establishment of the Federal Reserve in 1913,  banking crises were occurring every few years, with the inflation rate swinging wildly  from positive to negative 10%.  Macro economic theory provides an explanation for this.  When banks act to maximize their profits, they amplify swings in the business cycle.  Banks would maximize short term profits buy creating more money (by lending more) during rising inflation, and shrink the money supply by lending  less during lower inflation or deflation.  

    The federal reserve is able encourages banks to do the opposite, in order to diminish swings in the business cycle instead of amplifying it.  They do this by setting key interest rates and through buying and selling treasury securities and other financial instruments in the open market.  They have in fact been successful in reducing the frequency and severity of business cycle swings and continue to improve.   

  • 4 weeks ago

    Here's a trick to avoid the " scourge " . If you don't want to pay interest , don't borrow money .

    If you do borrow money , pay the interest being aware that those charges eliminated your need to spend years saving up money to make a large purchase .

  • wowser
    Lv 4
    4 weeks ago

    cleary they do!!!!!!!!!!!!!!!!!!

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  • Anonymous
    4 weeks ago

    Because money talks and BS walks...The banks have the money so they naturally have most of the politicians in their pockets. Thats the way the GOP likes it and five of the righty SC justices made sure it stays that way in Citizens United case.

  • 4 weeks ago

    Because they're executives get rich without paying much taxes while the student loans that they lend end up crippling the lives of young people. Just vote Democrat.

    Vote Blue

    • Ryde,0n
      Lv 7
      4 weeks agoReport

      MSNBC has never bothered to inform the Lefties that the government has taken over the student loan business .

  • Jeff D
    Lv 7
    4 weeks ago

    LOL.  They're not; but if you don't like banks then don't use them.

  • 4 weeks ago

    Because they abuse their power and use questionable practices to make money.

  • Ro
    Lv 7
    4 weeks ago

    Because the voices in your head say so?

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