The Mudcat Café TM
Thread #115022   Message #2459117
Posted By: The Fooles Troupe
07-Oct-08 - 07:31 AM
Thread Name: BS: The Economy for Dummies
Subject: RE: BS: The Economy for Dummies
Bank A loans money to Bank B
So B pays interest to A - Ok

So far so good. Simple! :-)

Now along comes Bank C.

Bank B loans money to Bank C
So C pays interest to B - Ok

You would expect that C would loan money to bank D, but no - it loans some to A! and so does B!!!!!

WTF?

I'm glad i don't pretend to understand Economics... :-)