{"id":52,"date":"2021-10-11T19:34:00","date_gmt":"2021-10-11T19:34:00","guid":{"rendered":""},"modified":"2021-12-22T22:01:52","modified_gmt":"2021-12-22T22:01:52","slug":"the-key-to-understanding-bankers-wealth","status":"publish","type":"post","link":"http:\/\/mn.arenter.com\/coach2\/2021\/10\/11\/the-key-to-understanding-bankers-wealth\/","title":{"rendered":"The Key to Understanding Bankers Wealth"},"content":{"rendered":"

A History of the Mandrake Mechanism:<\/span><\/h2>\n
The federal reserve states that member banks must keep no less than 10% in reserves.  If someone makes $100 deposit, the member bank can lend out $900.<\/span><\/div>\n

<\/span><\/div>\n
Let’s see how this Mandrake Mechanism works:<\/u><\/span><\/div>\n

<\/u><\/span><\/div>\n
A $100 deposit is made and Joe borrower, borrows $900 at 1% per month, and starts making $90 payments.  Imagine that goes on and on and on, until that’s paid back. <\/span><\/div>\n
\n
<\/a><\/div>\n


<\/span><\/div>\n

Although that’s good money, there is more good news. The lender can use that performing note as collateral, and borrow against it.   It can actually borrow up to 100% of it’s value.  <\/span><\/div>\n

<\/span><\/div>\n
Let’s say they do that, and the bank uses the promissory note as collateral, and borrows all of it’s value @ half of the interst rate.   So they are owed $45 month to their lender (the bank’s lender). So the bank then gets their $900 back, but they owe $45\/month.  <\/span><\/div>\n

<\/span><\/div>\n
So let’s review.  <\/span><\/div>\n
The bank receives a deposit of $100.   They lend out $900, receiving $90\/month.  They then pledge that note as collateral and receive their $900 back and owe $45\/month for that loan.  They then do this again.   <\/span><\/div>\n

<\/span><\/div>\n
They lend out $900, receiving $90\/month.  They then pledge that note as collateral and receive<\/span> their $900 back and owe $45\/month for that loan.  They then do this again. <\/span>  <\/span><\/div>\n

<\/span><\/div>\n
They lend out $900, receiving $90\/month.  They then pledge that note as collateral and receive<\/span> their $900 back and owe $45\/month for that loan.  They then do this again. <\/span>  <\/span><\/div>\n

<\/span><\/div>\n
They lend out $900, receiving $90\/month.  They then pledge that note as collateral and receive<\/span> their $900 back and owe $45\/month for that loan.  They then do this again. <\/span>  <\/span><\/div>\n

<\/span><\/div>\n
Do you see why banks have the nicest buildings?<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

A History of the Mandrake Mechanism: The federal reserve states that member banks must keep no less than 10% in reserves.  If someone makes $100 deposit, the member bank can lend out $900. Let’s see how this Mandrake Mechanism works: A $100 deposit is made and Joe borrower, borrows $900 at 1% per month, and […]<\/p>\n","protected":false},"author":1,"featured_media":117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pagelayer_contact_templates":[],"_pagelayer_content":"","footnotes":""},"categories":[26,21,25,18,22,23],"tags":[],"class_list":["post-52","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banker-mentality","category-banking","category-coaching-tips","category-investor-tips","category-opm","category-real-estate-investing"],"_links":{"self":[{"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/posts\/52","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/comments?post=52"}],"version-history":[{"count":1,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/posts\/52\/revisions"}],"predecessor-version":[{"id":118,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/posts\/52\/revisions\/118"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/media\/117"}],"wp:attachment":[{"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/media?parent=52"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/categories?post=52"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/mn.arenter.com\/coach2\/wp-json\/wp\/v2\/tags?post=52"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}