this post was submitted on 16 Feb 2026
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A Boring Dystopia

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[–] JcbAzPx@lemmy.world 2 points 19 hours ago (1 children)

They can get interest rates that are lower than the tax they would pay. Often, they hardly pay any interest at all.

[–] hexabs@lemmy.world 2 points 19 hours ago (2 children)

Why do banks do this? Sounds like a favor.

[–] smeenz@lemmy.nz 1 points 19 hours ago (1 children)

Because a small rate on a large loan is still a lot of income to the bank

[–] ThirdConsul@lemmy.zip 1 points 17 hours ago

And of course because banks can create more money than they have.

[–] JcbAzPx@lemmy.world 1 points 19 hours ago

Well, many of the people that do this have large stakes in banks.