Lending Credit Not the Same as Extending Credit

[Bill Smith]

[CONTINUED FROM OTHER THREAD]

You are improperly equating "lending credit" with "extending credit".

The two are not any more the same than a Venetian Blind is the same thing as a Blind Venetian.

Lending credit refers to the process of basically lending your ability to borrow money to somebody else, i.e., Bank of American can't say to Wachovia, "Hey, we've got a line of credit for $500 million from UBS, and since we're not using it, we will lend it to you for a 2% fee".

The concept of "extending credit" is simply making a loan. Banks and other financial institutions do that ALL THE TIME.

Show me an example of where "lending credit" is equated with "extending credit".

The use of the phrase "create money" is economics slang, like "raining cats and dogs". It does not refer to actually printing money.

[Bill Smith]

The extra "money" and spending power creates inflation and causes prices to rise, costing all of us more fiat money each time we purchase anything. This also undermines the value of the dollar.

So that's why during the greatest housing boom in history, with more homes built and financed at any time in history, and even with a war and rising oil prices, that inflation stayed near historic lows.

Yeah, great logic, Heidi. :rolleyes:

[Ice]

Originally Posted by Bill Smith

[CONTINUED FROM OTHER THREAD]

You are improperly equating "lending credit" with "extending credit".

The two are not any more the same than a Venetian Blind is the same thing as a Blind Venetian.

Lending credit refers to the process of basically lending your ability to borrow money to somebody else, i.e., Bank of American can't say to Wachovia, "Hey, we've got a line of credit for $500 million from UBS, and since we're not using it, we will lend it to you for a 2% fee".

The concept of "extending credit" is simply making a loan. Banks and other financial institutions do that ALL THE TIME.

Show me an example of where "lending credit" is equated with "extending credit".

The use of the phrase "create money" is economics slang, like "raining cats and dogs". It does not refer to actually printing money.

Bill,

This post was answered in the other thread.

Here's something for the folks to dwell on: If all major banks are nothing more than trust companies -- then wouldn't they be in violation of the National Banking Act if the "created money out of thin air"?

Ice

[Bill Smith]

But they are NOT "creating money out of thin air", nor are they acting as Trust Companies in extending credit (loans) to their customers.

Again, what do you think the Seller is getting for turning over title to his house? Blueberries?

The Seller is getting cash. Now, where does that cash come from? It's coming from the Borrower, who borrowed it from the Bank, because the Borrower didn't have the dough or else he would have just paid the Seller cash in the first place.

So, there IS cash being paid. Now, where does that CASH comes from? [This requests what you can PROVE, and not conspiracy theories or Heidi's out-of-context quotes.]

[Ice]

But we have their own admission that they ARE creating money out of thin air... where do you think we got the phrase?... from THEM !

And once again... the bank was not at risk at any time.

Ice

[Bill Smith]

Whose admission? Do you have an admission from Bank of America that Bank of America is creating money, or do you have an "admission" by way of some publication somewhere that would be inadmissible as hearsay and irrelevant since whoever made the admission is not a party to the case, i.e., Lender or Borrower.

Be exact -- not random association.

As far as you second statement goes, the bank IS at risk since if you default it means that the Bank gave the Seller money for the House, you got the House, and the Bank got nothing. Default rates DO hurt banks. That's why banks suffer losses and sometimes fail when the economy slows, and people lose their jobs and can't pay their loans.

Show me one credible person who says that the bank is not at risk of a default. Quoting from somebody else on this forum not acceptable.

[leatherlips]

I have an affidavit of one Walker F. Todd an expert witness with 20 years as an attorney and legal officer for the legal departments of the Federal Reserve Banks of New York and Cleveland. It is 17 pages long but it shows how the banks create the fraud and how the credit system really works. The man who used him in the case the affidavit was used in won.

[Bill Smith]

Post it, so that we can make sure that you are not misinterpreting it like a failed cartoonist might.

[hAKEEM]

Ok if they are not creating money out of thin air than my name is George Bush. the bank gives you a check not cash ask for the loan in cash they will laugh at you the banks take your Loan(note) you created and sell it to the highiest bidder or to the feds and borrow 10 times off your promise to pay. Thats why its call a promissary note ;a note you promise to pay not the bank the bank then has your house hostage until you promise to pay they never promise you anything but help structure the note with your signature all that paper work they created for you and you sign it confirming it. You notice nobody wants to deal with cash and when you do it gets reported to the Feds/IRS, not to make sure its drug money but to make sure your not creating money.

[douglasc]

Wow Bill, the tone in your voice depicts one of desperation! Who is pulling your strings? Who are you working for that you are here day in and day out wanting to prove your DOGMATIC point? How much are THEY paying you to post your OPINION? For God's sakes, you sound more desperate to get your OPINION out to the masses than a dog in heat! What gives?