Q. If “banks” no longer exist, where will I obtain a loan?
A. An investor. Loans are investments. Investors specialize in making investments which include loaning people money for the purchase of a house, or the funding of a business, etc. However, the market for these investments is in terrible shape currently since the risk of default is still being shouldered by “the People” (government). In other words, when government centrally plans insurance against default in favor of investors, the market for investment does not do its job in correcting poor behavior by flushing out the people who make bad decisions. Consequently, government gets taken advantage of by people who rely on socializing investment-insurance. “Banks” are made up of people. While some people should very much be in the business of investing, there are those who are yet unaware they need more training. It all boils down to whether or not one is competent at negotiating uncertainty (risk). Many people do not wish to face realistic levels of uncertainty and end up looking for ways to either hide it, or pass off its ultimate burden on others. Remember, a healthy and truthful competition in the investment market will solve these issues. Another reason why “banks” gotta go.