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Off Topic » in reply to Corrected for inflation, the Federal government is spending more than the amount of the entire WWII debt every single year.

Re: Corrected for inflation, the Federal government is spending more than the amount of the entire WWII debt every single year.
ER — (archived)

That was my point too. If you borrow money or sell stock to build a factory, that factory will produce wealth and create jobs, and provide useful products and services for people. When you sell those products and services, you pay back the guy you borrowed from, and he gets a little interest to make it worth his while.

But when a bank loans out a billion when only a million is in the vault, and then uses the IOUs as collateral to borrow even more so it can loan that out too, and so on, I fail to see how that has any connection any more to real business. The nice little Danny DeVito speech in "Other People's Money" just doesn't seem to apply here.

Borrowing money to pay your debts can't be that much different than "bundling up" bad mortgages and selling them to people. I beleieve this is a disease that people who make their living by handling money (as opposed to people who make things or think about how to make things)are congenitally susceptible to, whether they work for government or business. For lack of a better word, I lump them all into the category of "suits". In my opinion, they are the source of all evil.

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