Like All Businesses, Banks Have Investors To Please

Let’s imagine for fun you the reader approaching an investor or lender about a business concept the fruits of which will generate proceeds that merely pay back what the investor or lender put up in the first place. Such a deal would find no takers, which is really no insight.

Precisely due to the genius of compounding, no one with capital ever willingly puts it to work in order to attain zero returns. Only in academia, or in the punditry, is capital or credit ever “costless.”