Are you a banker?

[OldWiseGuy]

Banks are being vilified again on another thread, but is it justified? If you have savings in a bank you are a de facto banker as it is your money being lent (the bank's assets are generally held in reserve against bad loans and other problems) and you are receiving part of the interest being charged for those loans. Therefore you are being demonized along with the bank.

So, is it more socially acceptable to be a poor victimized borrower or a moxy saver on their way to achieving the American Dream?

 

[Terminal_Marxicity]

Banks are being vilified again on another thread, but is it justified? If you have savings in a bank you are a de facto banker as it is your money being lent (the bank's assets are generally held in reserve against bad loans and other problems) and you are receiving part of the interest being charged for those loans. Therefore you are being demonized along with the bank.

So, is it more socially acceptable to be a poor victimized borrower or a moxy saver on their way to achieving the American Dream?

Nope, I like keeping my money. Fractional Reserve Lending is, by definition, a pyramid scheme designed to leave you holding a hot potato instead of your life savings when it comes to deciding who gets said fractional reserve.

 

[Aryeh Jay]

The Constitution says only gold or silver is real money.

 

[Aryeh Jay]

Banks are being vilified again on another thread, but is it justified? If you have savings in a bank you are a de facto banker as it is your money being lent (the bank's assets are generally held in reserve against bad loans and other problems) and you are receiving part of the interest being charged for those loans. Therefore you are being demonized along with the bank.

So, is it more socially acceptable to be a poor victimized borrower or a moxy saver on their way to achieving the American Dream?

By that same reasoning, anyone that pays taxes is responsible of whatever the government does with those taxes.

 

[Terminal_Marxicity]

The Constitution says only gold or silver is real money.

I hear lead works in pinch.

 

[RDKirk]

Banks are being vilified again on another thread, but is it justified? If you have savings in a bank you are a de facto banker as it is your money being lent (the bank's assets are generally held in reserve against bad loans and other problems) and you are receiving part of the interest being charged for those loans. Therefore you are being demonized along with the bank.

So, is it more socially acceptable to be a poor victimized borrower or a moxy saver on their way to achieving the American Dream?

No, if you have a savings account, you have actually loaned the bank money and the bank is paying you interest on that loan. It doesn't make you a banker, however, it makes you a patsy, because the bank can fail and you lose your money. No, FDIC insurance is not you getting your money back, it's you getting someone else's money to replace yours...the bank got away scot free.

So a banker is someone who makes money on someone else's money, and doesn't go into debt if he loses the other person's money, but in fact makes even more money because he's freed of that debt while still collecting on the loans he made on it.

 

[RDKirk]

Nope, I like keeping my money. Fractional Reserve Lending is, by definition, a pyramid scheme designed to leave you holding the a hot potato instead of your life savings when it comes to deciding who gets said fractional reserve.

At least you can eat a potato.

 

[Terminal_Marxicity]

At least you can eat a potato.

Or power a LED flashlight.

 

[Cat Loaf You]

Banks are being vilified again on another thread, but is it justified? If you have savings in a bank you are a de facto banker as it is your money being lent (the bank's assets are generally held in reserve against bad loans and other problems) and you are receiving part of the interest being charged for those loans. Therefore you are being demonized along with the bank.

So, is it more socially acceptable to be a poor victimized borrower or a moxy saver on their way to achieving the American Dream?

Not really , in theory yes but in reality banks create money , they only need i forgot how much but let's say 10% , so you put 1000 USD into bank and they can lend to others 10 000 USD . If that person purchase a car and car seller gets that 10 000 and put it in bank they can lend 100 000 now , so literally 1000 USD can create millions of USD .

 

[OldWiseGuy]

Not really , in theory yes but in reality banks create money , they only need i forgot how much but let's say 10% , so you put 1000 USD into bank and they can lend to others 10 000 USD . If that person purchase a car and car seller gets that 10 000 and put it in bank they can lend 100 000 now , so literally 1000 USD can create millions of USD .

And yet there is a shortage of money. Curious.

 

[Terminal_Marxicity]

And yet there is a shortage of money. Curious.

Perception. Like the perception that diamonds are as rare as they are.

 

[Aryeh Jay]

And yet there is a shortage of money. Curious.

There is?

 

[OldWiseGuy]

No, if you have a savings account, you have actually loaned the bank money and the bank is paying you interest on that loan.

So it does make you a 'lender'.

 

[Terminal_Marxicity]

So it does make you a 'lender'.

More like a 'mark'.

 

[OldWiseGuy]

There is?

The cries go up to heaven about it.

 

[OldWiseGuy]

So a banker is someone who makes money on someone else's money, and doesn't go into debt if he loses the other person's money, but in fact makes even more money because he's freed of that debt while still collecting on the loans he made on it.

Little money is actually lost by banks. Most is covered by FDIC insurance, which is funded by the banks themselves.

 

[OldWiseGuy]

More like a 'mark'.

We know the whole system is eventually going to fail but we will use it until it does.

 

[Cat Loaf You]

And yet there is a shortage of money. Curious.

Well if you print so much money then indeed there is . Imagine city isolated from everybody else . I live there and have 10$ and in my city there is 100$ overall money that means i have 10% of wealth but when president of that city print another 100$ my 10$ is now worth 5% instead of 10% , i have been robbed by my own goverment but many people don't see it that way . Inflation is literally a tax .

 

[OldWiseGuy]

Perception. Like the perception that diamonds are as rare as they are.

Tell that to the 50 million living in poverty.

 

[OldWiseGuy]

Well if you print so much money then indeed there is . Imagine city isolated from everybody else . I live there and have 10$ and in my city there is 100$ overall money that means i have 10% of wealth but when president of that city print another 100$ my 10$ is now worth 5% instead of 10% , i have been robbed by my own goverment but many people don't see it that way . Inflation is literally a tax .

Inflation is usually migrated when everyone raises their prices and more money is printed. Also the fraction of one's income needed for various goods and services remains pretty constant regardless of increasing costs.