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“A bank’s whole existence is based on it being able to lend money, other people’s money to be precise. “
As I understand it, a bank lends you money based on your own asset.So it isn’t ‘other people’s money’ its a the borrowers own money that they have to repay.
At no point do banks actually take money from anyone else, they just assume the risk and take the profit. The money comes from thin air.