Quote from: o_e_l_e_o on July 26, 2019, 02:12:17 PM

Quote from: deisik on July 26, 2019, 10:38:57 AM

No bank will give you anything on an empty promise

They will, though.

Sure, things like mortgages or car finance are collateralized against the value of your home or your car, but lots of loans aren't. I could get a brand new credit card today with a five figure spending limit, based solely on my past behavior, and without providing any collateral

This is definitely not an empty promise

But you wouldn't really expect a random dude from the streets to get a five figure credit on his word alone, would you? Also, a five figure amount can be anything from 10k to 100k and in what currency exactly? Regardless, how many people are willing to lend coins here to a fresh account? I don't think that many if any at all. So why should banks be different? Anyway, the loans you are talking about won't make a dent in the bank's balance if the borrower defaults on his debt, so my point still holds overall

Quote from: o_e_l_e_o on July 26, 2019, 02:12:17 PM

Starts ups looking for business loans often have little in the way of collateral to provide. Sure, the bank could come after you for damages if you default, but that's not the same as them having assets to back up the loans they provide

Startups are typically looking for venture capital, not bank credits

Quote from: o_e_l_e_o on July 26, 2019, 02:12:17 PM

The entire modern banking system is based on the fact banks can create money without having the assets to back it up

Okay, let's agree to disagree here