ELI5- how exactly do ‘bankers’ become the richest people around(Jp Morgan, Rockefeller, rothschilds etc.), when they don’t really produce anything.
In: 17100
In the simplest terms, bank has money and loans you $100 if you promise to pay back $105. Repeat this on a nationwide out global scale and they make money without producing anything.
Where do they get their money? Bank says if you give them your $100 to hold for you they’ll return $101 in a year. They loan this money and get back 105, give you back 101 and get $4 in the process.
Latest Answers