What are you thinking RIGHT NOW?

[Buffy]

Wow, she just asked me if I think she should change her name. Eh, no. I do not think so.

[Carl]

Why is it so cold in here? I should have kept my jacket with me. >.<
...also, why am I more distracted and sad today than usual? I need to get out of this freaking slump.

[Regulus]

How the heck do banks make money? These numbers just don't add up. I suppose that's how our economy went to the gutter.

[FlipMode]

How the heck do banks make money? These numbers just don't add up. I suppose that's how our economy went to the gutter.

From what I understand, by investing money (spending to create more), interest and fees and insurance policies and such things.
Banks are just like any other company, but more influenced by national (and international) economics. Much like how a store would sell a box of cereal for profit, banks sell... Well money... For profit.

[RayCat]

Boriiiiing

[TheGunner18]

The morally deluded... Oh what are you gonna do...

Tell me about it...
Just how the world is, I guess.

[Regulus]

How the heck do banks make money? These numbers just don't add up. I suppose that's how our economy went to the gutter.

From what I understand, by investing money (spending to create more), interest and fees and insurance policies and such things.
Banks are just like any other company, but more influenced by national (and international) economics. Much like how a store would sell a box of cereal for profit, banks sell... Well money... For profit.

Well yes, but they only make money because they earn more interest on the money they invest than the people who give their money to the bank earn in interest. The total net profit is only the difference in interest rates times the amount invested, times the time invested, is it not?

[TheRoguePrince]

How the heck do banks make money? These numbers just don't add up. I suppose that's how our economy went to the gutter.

From what I understand, by investing money (spending to create more), interest and fees and insurance policies and such things.
Banks are just like any other company, but more influenced by national (and international) economics. Much like how a store would sell a box of cereal for profit, banks sell... Well money... For profit.

Well yes, but they only make money because they earn more interest on the money they invest than the people who give their money to the bank earn in interest. The total net profit is only the difference in interest rates times the amount invested, times the time invested, is it not?

No. The banks also make money from the interest they CHARGE to the customers who borrow from them.

And when you consider that banks pay out less than 1 percent interest to their customers who have savings accounts, but that they charge 4 percent to their customers with mortgages, and 5 percent to their customers with car loans, and 15 percent or more to their customers who have credit cards, plus late fees and overdraft fees ... then you can see where they make all their money.

[Regulus]

Indeed, but that was not part of the equation for which I had to create, differentiate, and solve.

Still, they're a bunch of jerks. I would think the value of money (or interest) would be constant, in a fair world, at least.

[TheGunner18]

The world has never been, and probably never will be, a fair place, unfortunately. The greedy businessman who only care for their own happiness and wealth are going to be our downfall eventually.

Of course, hopefully that'll never happen.