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Non Compos Mentis
Join Date: May 2001
Location: Off the grid- Almost
Posts: 10,653
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A bank spreads it's risk out over hundreds of loans. They can absorb a few bad ones. If your one loan is a bad one.....
Also, The banker is betting with other people's money. He still gets a paycheck at the end of the month no matter how the loans are performing (up to a point, of course).
If someone wants to buy a car from me, and Mr. Banker will not loan him other people's money, why would I loan him my own?
Last edited by Dantilla; 09-08-2004 at 08:21 PM..
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