Sticking It to Banks is Fun!

It seems that I read a new article at least once a week concerning the panic that has set in among bank executives about peer to peer lending. Why? Because capital is the life blood of a bank’s earning potential. In case you aren’t aware, banks make their money by making loans and earning interest from them. But, where do they get the money to make these loans? From the deposits that YOU and millions of other people give to them. So, they instead of you, are making money off of your capital. They like to make you think that you’re getting a good return on your deposits in the form of CD’s and interest bearing savings accounts. But, the returns on these are measly compared to what the bank is earning. If you haven’t guessed it by now, I think banks are basically leeches. Anyway, back to my original point – if customer’s aren’t filling the bank’s coffers with their money then the banks can’t use it to earn more for themselves. The growing popularity of peer to peer lending has caused an increased amount of capital to be put into the vaults of peer lending networks and a resultant decrease in bank vaults. This is good news, screwing the bank is always fun!

Continue reading »

Popularity: 16% [?]

If you enjoyed this post, make sure you subscribe to my RSS feed!

Finding Good CD and Savings Account Rates