(January 2, 2014 at 9:59 am)Psykhronic Wrote: Lending is not automatically good (nor bad). We have seen poor decisions regarding mortgages leading to a housing crash. Some businesses are doomed from the start but still get loans, although this has not been a country-wide issue in the USA. Also, rich people are not the only ones who put their money in the bank to accumulate interest.
And how does this mean the rich are helping the poor? Many, many poor people don't even have the credit to take out loans.
The housing crisis was largely (but not exclusively) started because of a policy by the US government designed to encourage homeowning amongst people who were previously deemed high risk especially those from minorities.
The largest investors are pension funds the money saved by millions of ordinary people.
When businesses do well they employ more people and that definitely helps the poor.
