Posts Tagged ‘borrower’

“An informed borrower is simply less vulnerable to fraud and abuse.” -Alan Greenspan

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“Not for nothing do we have such a preposterous financial system.  The borrower buys things he doesn’t need with money he doesn’t have.  The lender lends money that no one ever earned or saved, at the lowest interest rates in history, to borrowers who can’t pay it back.” –Bill Bonner

“Not for nothing do we have such a preposterous financial system.  The borrower buys things he doesn’t need with money he doesn’t have.  The lender lends money that no one ever earned or saved, at the lowest interest rates in history, to borrowers who can’t pay it back.” –Bill Bonner

Money Storage

Posted: February 23, 2016 in Money Matters
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“A borrower takes your money and uses it.  He doesn’t just store it for you; that is what safe deposit boxes are for.  When you deposit your money in a bank, it’s the same thing.  You are making a loan to the bank.  The bank doesn’t store your money in a safe on your behalf; it uses it to balance its books.” -Bill Bonner

Sweden, Denmark, and Switzerland all have negative interest rates.  Negative interest rates mean the lender literally pays the borrower for the privilege of lending him money. It’s a bizarre, upside-down concept.  But negative rates are not some European anomaly.  The Federal Reserve discussed the possibility of using negative interest rates in the U.S. at its last meeting.  When you deposit money in a bank, you are lending money to the bank.  However, with negative rates, you don’t earn interest.  Instead, you pay the bank.” -Nick Giambruno

Borrow More?

Posted: January 25, 2015 in Debt
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“The more you borrow, the more you had better prepare to pay back.  Sooner or later, every debt is paid, if not by the borrower then by the lender.” -Bill Bonner

Borrow a Penny?

Posted: November 16, 2014 in Money Matters
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“Don’t ever borrow a penny.  As soon as you understand interest, you will only be a lender.  You will never be a borrower.” -Porter Stansberry