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Fixing Globalization & The Unbearable Simplicity of Banking - Localize the economy with Food Security. Google Preppers, Permaculture, Transition Cities and Follow the Links, the Neurons of the Global Brain...
Briefly, lending is a no-risk, 'asset-secured' business, in its simplest form seeing borrowers liable only for the original loan, secured against the borrower's assets, plus interest. When the loan is payed back, the bank profits from the interest. When borrowers default, they yield to the lender whatever securities they've put up, normally far exceeding the value of the original loan. The lender still profits.
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