The bank doesn't lend you someone else's money, it creates the money(no effort) and you have to work and put up real collateral to pay it back.
By G-d we should all be working to expose and undo this madness.
Err, there most certainly is an effort assessing credit risk and dealing with the fallout when someone defaults.
Is it genuinely not obvious to you than bank deposits aren't something that banks can create and destroy on a whim?
The loan is the asset because that is money coming into the bank. Your deposits are liabilities because that is money you could withdraw from the bank.
So it is both a liability and an asset. They don't create it out of thin air, they create it out of ink and paper. It's a hack of the double-entry bookkeeping system.
I recommend Paul Grignon's Money As Debt: https://www.youtube.com/watch?v=jqvKjsIxT_8
And do you agree there is a "risk to the Bank in lending out money they just created" or is that still up for discussion?
What is the bank risking when it creates the money and uses the anachronistically titled "loan" contract to distribute it? • They risk only being able to extract so much labor. • They risk taking on collateral which is a REAL asset that someone worked for, like their home if they're unable to generate enough of the assets the banks just write into existence. • They risk passing the buck up the ladder ultimately to the lender of last result if they're "too big to fail" which just creates more money to deal with the problem.
Banks are not lending out other people's money, everyone tacitly knows this, if they were how come when you go to the bank they never say, sorry its out on loan at the moment? This was the case at historically and banks are still riding on the fact that people haven't gotten wise to the way it's worked for centuries now.
There is no lending taking place when bank loans are made.
You seemed to be claiming that a bank incurs no cost ("no effort") to issue a loan. Are you sticking to that?
It is that bad.