
Inflation - How Markets Fail
Economic Update with Richard D. Wolff
00:00
What Happens When a Bank Makes a Big Fat Loan?
The bank makes the loan because it's going to get back ten, 20, 30, forty % of that loan in fees and early payments. The government of the strong man leader who gets the loan uses it to build up its political support. Another part of the loan is used to pay fees and consulting bids to the very bankers from whom the loan comes.
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