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We are talking about loans. A loan is not an investment.
Because for the most part in the world... Investments are a pyramid scam taking advantage of the unfortunate.
2
: the lending of money with an interest charge for its use; especially : the lending of money at exorbitant interest rates
originally posted by: Phage
a reply to: stirling
Interest bearing loans should be considered usury.....
Why?
Why would should I loan you money (capital) which could be earning me money (investment), for free?
because compound interest is more powerful than the atomic bomb!
I'm not.
Why defend the robber barron's
Until May, large financial institutions investigated for wrongdoing had dodged criminal prosecution under the Obama administration, despite evidence from federal regulators and prosecutors showing that big banks had, for instance, laundered money for suspected terrorists and drug cartels; manipulated interest rate benchmarks; rigged various commodities markets; mislead investors in mortgage-linked securities; duped homeowners into taking out expensive mortgages; manipulated municipal debt markets; and broke state and federal rules when attempting to seize homes after borrowers fell behind on their payments, a scandal that became known as "robosigning."
Rather than dallying on the definition of usury would you address this:
originally posted by: Phage
a reply to: jacobe001
The Too Big To Fail Banks got free money via bailouts.
No. They didn't.
originally posted by: Phage
a reply to: stirling
Interest bearing loans should be considered usury.....
Why?
Why would should I loan you money (capital) which could be earning me money (investment), for free?
but are they moral?
originally posted by: Phage
a reply to: jacobe001
The Too Big To Fail Banks got free money via bailouts.
No. They didn't.
But 48 percent of the banks that have repaid the CPP used money they'd gotten from other federal programs, according to the GAO report
The Bailout Scorecard
Last update: Nov. 5, 2014
Altogether, accounting for both the TARP and the Fannie and Freddie bailout, $613B has gone out the door—invested, loaned, or paid out—while $388B has been returned.
Monthly amortized loan or mortgage payments
See also: Mortgage calculator § Monthly payment formula
The interest on loans and mortgages that are amortized—that is, have a smooth monthly payment until the loan has been paid off—is often compounded monthly. The formula for payments is found from the following argument.
Exact formula for monthly payment
An exact formula for the monthly payment is
P= \frac[Li][1-\frac[1][(1+i)^n]]
or equivalently
P= \frac[Li][1-e^[-n\ln(1+i)]]
This can be derived by considering how much is left to be repaid after each month. After the first month L_1=(1+i) L - P is left, i.e. the initial amount has increased less the payment. If the whole loan was repaid after a month then L_1=0 so L=\frac[P][1+i] After the second month L_2=(1+i) L_1 - P is left, that is L_2=(1+i)((1+i)L-P)-P. If the whole loan was repaid after two months L_2=0 this gives the equation L = \frac[P][1+i]+\frac[P][(1+i)^2]. This equation generalises for a term of n months, L = P \sum_[j=1]^n \frac[1][(1+i)^j] . This is a geometric series which has the sum
L=\frac[P][i]\left(1-\frac[1][(1+i)^n]\right)
which can be rearranged to give
P= \frac[Li][1-\frac[1][(1+i)^n]]=\frac[Li][1-e^[-n\ln(1+i)]]
This formula for the monthly payment on a U.S. mortgage is exact and is what banks use.
In Excel, the function PMT() function is used. The syntax for the PMT function is:
= - PMT( interest_rate, number_payments, PV, [FV],[Type] )
See office.microsoft.com... for more details.
For example, for interest rate of 6% (0.06/12 p.m.), 25 years * 12 p.a., PV of $150,000, FV of 0, type of 0 gives:
= - PMT( 0.06/12, 25 * 12, 150000, 0, 0 )
= $966.45 p.m.
originally posted by: Phage
a reply to: AlaskanDad
but are they moral?
Why would should I loan you money (capital) which could be earning me money (investment), for free? So that you can earn money off of my capital? Is that "moral?"
Is it ok if you loan me 10,000 Bucks on Tuesday and I'll pay you back with 10,000 bucks you gave me earlier earmarked for a different cause.
originally posted by: Phage
a reply to: DeadSeraph
Low interest loans.
They have been repaying those loans. With interest. Low interest, granted. But then, I have a very low interest mortgage as well.
www.mcclatchydc.com...
“We now know that the Fed loaned trillions of dollars at zero or near-zero interest rates not only to the largest financial institutions in this country, but also to many of our largest corporations—including GE, McDonalds and Verizon. Most surprising, the Fed also lent huge sums of money to foreign private banks and corporations” says Sanders, who since the 1990s has, with Texas Congressman Ron Paul, Florida Congressman Alan Grayson and a handful of others, been an ardent critic of the Fed’s secrecy, unaccountable financial manipulations and coziness with Wall Street.