this post was submitted on 30 Sep 2024
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Right, what I hadn't accounted for was that you were having him throw in 20 of his own capital as well, but the math works out the same from the perspective of the lender. He gets his split of the profit, and our industrial capitalist walks away with 15 even if he has to pay 20 into the process as well. He's just using the loaned capital as a raw material in the process, capital has become a commodity through finance.