You are not allowed to use fractional reserves either. Imagine how rich you could become if you could loan out 10 times or more than the money you had.
There are peer to peer lending options to use other than banks too. I have accounts with lendingclub and prosper as two examples.
Banks only exist because people use debt. Everyone should do their very best to avoid all forms of debt. Sure, a mortgage is a bit of an exception, but I would avoid a mortgage if at all possible too.
Don't use debt. Get out of debt. The less debt people use, the sooner the system collapses. Governments use debt too of course, and it is used to justify taxes. No government, no debt.... no taxes!
Very true, its amazing the banks can get away with it.
Banks are infiltrating the cryptoverse with Ripple and the other cryptic differentiated currencies that are conceived with financial institutions in mind.
Do you think it unwise to invest in Ripple from a moral standpoint? I haven't bought into Ripple but like the idea of profiting off the banks attempts as I assume they have lots of money to back it.
But a large part of me feels like they've had enough of my money.
I would not invest in the ones backed by powerful financial institutions. Banks are going to lobby for SEC and other regulators to step in to close the drawbridge on ICO's once they have entered the Crypto kingdom.
words of wisdom
The mortgage should not be an exception. Mortgage literally translate to "death contract." The way to get around getting a mortgage is to rent with housemates or live with your parents.
True, but I bought a foreclosure that is a superb rental. My mortgage payment is way below that of rent. I know no matter what house prices do I'll not be stuck here either. There are smart ways to buy a home in your advantage in other words. :)