American Monetary Act
> Does a private equity group make money by collecting interest ? Are > mortgages a big part of how banks ( or finance companies, whatever) make > their money ? The buy up companies, taking their stock off the market, often for little relatively money paying for their purchases by having the company take on debt. ^^^^^ CB: What are the financial institution types that loan the companies (bought by the investment bankers) this money ? Doesn't this lending institution profit from interest, as well as fees, on these debts ? What lending institutions does Goldman Sachs cause a company it has bought to borrow money from ? ^^^^^ They pay themselves huge fees for this service, then sell stock for this debt-laden company to the public at a great profit. ^^^^ CB: The stock prices is up because the value of the company is up with borrowed money ? ^^^^^ The banks tend to package their mortgages to resell them to the public. They earn their profits by taking fees for their service. The pension fund or insurance company that buys up these packages can earn very high interest rates on the most risky part of the package, but they -- not the banks -- bear the risk. ^^^^^ CB: So the fees are paid upfront ? Interesting word renewal, "fee". Fee is the old name of ownership of land; landlords own "fees" in the land. So, these rent takers, investment bank landlords, take "fees". ^^^^^ > > Does the finance sector dominate the economy today in a way that did not in > the past ? Or did the finance sector dominate in the 1800's and 1900's ?
