/biz/ - Business & Finance

Sorry, it is not a ponzi scheme, it's a scam.

>>12178133
as opposed to everybody using bitcoin and having a hard cap on the world's money supply?

>>12178221
>having a hard cap on the world's money supply?

Literally the only correct way.

>>12178133
fractional reserve banking isn't inherently bad. the problem with its implementation is the precedent of not letting banks fail, as well as various temporary measures becoming permanent such as the suspension of gold convertability and the existence of the FDIC as a universal put option on depositor liquidity with the costs socialized

>>12178133
2008 is what happens when the system fails
in 2008 700 billion dollars of taxpayer money were spent to bail out banks. the next year, the CEO of a bailed out bank got a $500m eoy bonus.

this is why bitcoin was created. once crypto replaces fiat, it'll be impossible to create money out of thin air. people will be able to operate on 'promises', but everyone what's actual money and what's maybe-money

>>12178262

Yeah, I agree, I should have been more specific. It is the state-bank syndicate which is what I am referring to.

>>12178238
>>12178278
we've basically had that before with gold, a lot of people weren't happy with it.
and both the world population and economy double roughly every 50 years. for everybody to maintain the same amount of value with a fixed amount of money, they would have to lose half their coins every 25 years. which is fucking ridiculous.

>>12178262
fractional reserve lending is literally fraud.

You go to a club or theater, you put your coat in the cloakroom, the attendant gives you a ticket which is a paper note that allows you to claim your coat back. Then the attendant gives out more tickets than they have coats in the room. Then you go to get your coat back, and you find several people have competing claims on your property.

>>12178319
>>12178383
nation's already have the right print as much money as they see fit, fractional reserve isn't a fundamental change. if anything it ties the creation of money to economic activity; money is being created with the express purpose of being used, instead of the government guesstimating the money supply needed months after the fact.

>>12178357
Who says everybody needs anything? Fuck everybody, we keep to ourselves and our kin.

>>12178357
Niggers finna boutta get dumped on. Nigs get nigger, whites get richer

>>12178383
So vote with your money and don't keep it in a bank.

>>12178457
>nation's already have the right print as much money as they see fit

also fraud, 2 wrongs don't make a right.

>>12178539
exactly. All in on BTC

Another stupid libertarian sore spot along with inflation. If you stopped thinking of money as a stack of shiny rocks and instead of what it really is, an abstract flow of ideas. You would understand. The elegant efficiency of the modern economic system (ok the fundamentals of it, certainly not the entire thing).

Ask Keynes was based.

>>12178133

Banker here. Just a reminder this leverage is only for commercial banks. Retail banks have to operate within a loan to deposit ratio range. Most retail banks will not go over 110%. Also, the fdic literally backs your money, so even though we don't have enough cash on hand for our depositors, we pay insurance to make sure you'll still get paid.

You all sound like financial retards and should probably consider suicide for posting this horrid trash on a business board.

>>12178565
see >>12178357

>>12178572
Keynes was literally and unironically a pedophile.

As in, he fucked small boys. Really, look it up.

>>12178591
Everyone thinks that the FDIC just prints cash to cover lost deposits. If anyone understood it’s actual insurance premiums pooled from every member bank maybe they’d be less butthurt about it. But then again if they understood anything they learned in Econ or Finance 101 they would be less butthurt too. But no they got a C or D and said “fuck this shit it’s all a lie anyway”.

>>12178671
right and the bank doesn't pass that cost along they just eat it. fucking idiot.

>>12178671
The very idea that econ was anything beyond "we use fiat and that's a good thing" is laughable. Teachers have no concept beyond vague slogans and there's no school textbook going in detail about the implementation.

>>12178357
>a lot of people weren't happy with it.
Jews aren't people.

>>12178457
>money supply needed