Posted 9 years ago on Nov. 3, 2011, 11:23 a.m. EST by GeorgeMichaelBluth
from Arlington, VA
This content is user submitted and not an official statement
Thomas Edison said this almost 100 years ago after doing the math on a building project:
"People (banks) who will not turn a shovel full of dirt on a project nor contribute a pound of material, will collect more money than will the People who supply all the material and do all the work. This is the terrible thing about interest.
I put to you a case study from my industry, housing.
Developer buys, subdivides, and prepares a block of land for sale for $200,000 (cost price $125,000) Builder builds a home for $215,000 (cost price $175,000) A bank creates a mortgage at 7% for thirty years. Interest paid $578,958.24. (that is interest paid, NOT counting the original $415,000 which must also be paid back.)
*Developer profit= $75,000** *Builder profit= $50,000** *Bank profit = $578,958.24*
So the party that expends no labour or materials makes more than 4x times the profit of the other two combine.
Maybe Edison was on to something........
Be on the receiving end of those freshly printed federal reserve notes and that is how I think the 1% get there, stay there, and ride the little people like its Christmas in Texas.