Originally Posted By: Revlgking
The great religions, the prophets and the philosophers all agree: The paying a fee for the time factor involved in the circulation of money is THE BIG FLAW. It puts all the risk on the borrowers and makes them vulnerable to being cheated. Lenders as well as borrowers must share the risk involved.


First, it doesn't matter what Mohammed or Plato agreed with. Without reasons they're just a worthless opinions.

Lenders and borrowers do usually share the risk. Lenders who lend money for people to buy houses take the risk of the borrower being unable to repay it and the house's value dropping. Which is what happened a couple of years ago in America. Lenders lost money as well as borrowers. They both shared the risk.

With no interest at all, the borrower is taking no risk. So he can easily waste the money without fear of getting further into debt - just pay it back one day in the future when he finds some more money.

Quote:

DON'T TELL ME that you think that the flawed system we now have is working! Where have you been, asleep? Have you not heard of booms and busts? Have you forgotten 2008 already? And do I need to remind you of Wall Street, Goldman Sachs, the numerous Madoffs and other spinners of financial scams that even NOW, as I write this, are crippling many who assume they will never be the victims of derivatives, toxic mortgages and the like?


It seems bad because it's on TV and it was sudden. But has it really affected your life? Not mine. Sure some rich or greedy Americans lost some money, but they still ended up better off than most of the world's poor. Giving money to con-men (Madoff) is a problem that's independent of charging interest, so try not to confuse the issue with things like that.


Edited by kallog (04/05/11 04:07 AM)