The market forces are a complex mix of greed combined with supply and demand. The banking system is
based in a debt based system is doomed to failure by its very design. When the question is asked, where does the interest money come from that pays down principle and the INTEREST.... where does that money come from? Its like a game of musical chairs as a simple example... when the music stops... aka... the payment is due... the debt has to be serviced and that means an expansion of the money supply has to expand. The more money that is loaned out the more money that must be repaid including the interest on the principle. A debt based system once launched into existence must grow or it will die. ( no wonder we have inflation ) This is just one of the reasons why the world wide money supply continues to grow... as America continues to print money and inject it into the debt based system then other countries must also do the same to keep pace with inflation. Add to that, we have what is called "fractional reserve banking" or loan creation with minimal reserves. The standard use to be 10%.... at some institutions the reserve factor of 10% has been completely eliminated and not required as a rule for lending. Also keep in mind a promissory note for a loan when signed by an entity whether its a person or a corporation goes from the liability side of a banks ledger to the asset side of the ledger when the loan is funded. How's that for making money from of a signature that represents a promise to repay the debt? Money loaned out by banks reminds me of popcorn seeds being cooked at a movie theatre... the popcorn explodes and grows and purges out of the machine.... the same happens with loans when you have a 10% reserve factor... it can grow exponentially. This is what was happening before the 08 crash... NINJA LOANS... No Income no Job Loans.... or stated income loans that were originated in a fraudulent manner based on lies by those obtaining them were being made at unsustainable levels. These loans were bundled up as securities and sold all over the world... that is why the 08 collapse affected the whole world.... toxic debt was sold to anyone that wanted high paying returns on what appeared to be low risk securities that were actually ticking time bombs because those loans could not be repaid by the liars that borrowed the money.
I know of one local property that went parabolic during this time. It was 1 acre of commercial / residential that had a run down house on it. A guy I knew bought it for 135K in 1997 and fixed it up. By 2003 he sold it for 289K.... the value continued to rise up until the crash and it was hovering around a million in part because it had dual use zoning. In 10 years it went up about 7 to 800%... My wife and I had considered buying it at one time but it was out of our reach.
Back to banking... the creation of the Federal Reserve by 7 of the wealthiest men in the world represented about 25% of the world's net worth. The details are in the book titled "The Creature from Jekell Island" by G Edward Griffin. By creating the Federal Reserve Act and launching a debt based system we were on a one way path to a failed banking system. Glen Beck and G Edward Griffin present a history lesson on the FED.
Griffin's book was released in 1994.... it sold a few copies back then... however... after the 08 collapse it gained in sales due to the fact people wanted to know why and how we got to a world wide debt crisis where the FED appeared to be a big part of it.