However, isn't that money lent into existence? As I understand it there is nothing like a Gold standard securing it's existence, the $100 prior to the loan was not $100 from another source, it simply wasn't. It's value is based on the credit confidence in the lending institution that created it. It 'doesn't really exist' unless it's secured by real physical capital which I believe is rare these days. In that sense aren't they getting $50 from someone that did not exist before?
My whole take on the bill was roughly, "Hmm, banks and credit card companies want to change the bankrupcy laws in their favour. Big institutions that should know better want more power over the idiots they use. Oh yeh, that'll be a great law."
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timeasmymeasure
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Date: 2002-11-18 05:57 am (UTC)My whole take on the bill was roughly, "Hmm, banks and credit card companies want to change the bankrupcy laws in their favour. Big institutions that should know better want more power over the idiots they use. Oh yeh, that'll be a great law."