A question that has fascinated me since I first learned about the bankers various frauds is this -
Why do people fall for it?
And then, after debating with people who knew about it and defended it -
Why do people want to fall for it?
When I found out I had been conned, I was straight into writing letters, making phone calls, visiting branches to make sure that what I had found out was true and then to tell the bank to stick it's "debts" up their collective bumholes. (I did get them all cancelled too, a story I shall tell sometime.)
I finally realised the reason that the scam and scheme work - Guilt and Reciprocity.
This is the reason that the bankers fraudulent scheme works, ultimately. Most humans have an inbuilt desire to reciprocate equally when they receive some benefit from someone or just from good fortune.
Salesmen make use of this fact with the "free offer," which is really a hook into peoples sense of reciprocity. When people have to acquire banknotes or the bankers permission to get something that they like - a house, a car, or whatnot then they automatically assume that they should give something of equal value in return.
Not doing so creates a sense of guilt for the vast majority of humans. If we do a favour for someone, we can be annoyed or upset when nothing is returned, "not even a thank you" is a grumpy refrain we have all heard from time to time. If we lend one of our cherished possessions to another, we expect to have them looked after and are annoyed when they are not. There are few things worse than breaking or losing something vauable entrusted to us by a friend or family member.
Luckily for the bankers, the bulk of people equate this interpersonal lending with what the bankers do. Because of the massive cost disparity between the bankers issuance and the general populations effort to acquire that issuance and the fact that the bankers usually have whatever they give out back within a very short time frame indeed, these feelings of reciprocity and guilt are entirely misplaced.
We as general citizens have to work quite hard, take risks and put up collateral to acquire the bits of paper with dead gangleaders on them. The taxman is exceptionally keen to take them from us at every turn, traffic wardens want them, if you want a licence you need them. Families argue about who should have what amount of them, businesses compete for them.....life can be hard without them.
The banker just prints them.
To him they are more or less free. They require little effort and they always come home to him when he does give them out in a very short amount of time indeed. He doesn't sweat for the paper, he doesn't have the taxman bothering him (they are best friends) he doesn't have to go to work all day to acquire the paper. He just writes it down and he's got it.
Take out a loan with a bank and spend it in the morning and by teatime the banker will have his cash back, safe and sound. No need for reciprocity, no need to feel guilty, no need to do anything further.
And that's if it ever even leaves the bankers grasp or is printed at all......which doesn't happen all that often in this modern electronic world.
Do you owe workmen who just tell you they have built a wall for you?
Do you owe a mechanic who just tells you he has fixed your car?
Do you owe a banker who just tells you money has been moved around on your behalf?
Nope. No need for reciprocity, no need to feel guilty, no need to do anything further.