Banking

would you prefer a fractional reserve banking system where by banks loan out from savings and only need to keep a % of the deposit on hand. this both makes banks unstable and allows them to give interest on savings accounts. the lower the fraction of reserves the more unstable the banking system.

a full reserve banking system where your full deposits are held by the bank. this system is stable but banks have to charge fees to hold your monies.

note: in full reserve banking there are still loans but the capital to do so would come strictly from timed deposits where by the depositor gives up his right to the money for a given amount of time in order to receive an agreed on interest payment at the end of the holding period.

Edit: if you want fractional reserve banking what do you think the fractional reserve rate should be, current rate is around 10%

Lending money for a given amount of time for interest sounds exactly like a bond to me.wstfld

what compelled you to bring up something so dry and devoid of common interest i can only speculate

edit: youre a member of the old folks union

i speculate no more

[QUOTE="wstfld"]Lending money for a given amount of time for interest sounds exactly like a bond to me.surrealnumber5

[QUOTE="surrealnumber5"][QUOTE="wstfld"]Lending money for a given amount of time for interest sounds exactly like a bond to me.wstfld

[QUOTE="wstfld"][QUOTE="surrealnumber5"] or a CD, but really its just a contract. lending to the bank X for Yrate so the bank can loan that money out to someone else at Zrate. the only reason this would work is because the bank is a known lender and you are not, and you are not in the business of lending and the bank is. assuming you are not a bank....rawsavon

[QUOTE="rawsavon"][QUOTE="wstfld"] I prefer bonds because I know what municipality, government or corporation I'm getting into. Who the hell knows where the bank will lend your money.surrealnumber5

[QUOTE="surrealnumber5"][QUOTE="rawsavon"] At that point it becomes all about the rate. How much extra does the bank have to give to be able to entice 'you' to 'lend' to them and not somewhere else.rawsavon

[QUOTE="rawsavon"][QUOTE="surrealnumber5"] its all based on risk vs reward for most people but some people value the cause more then the payoff surrealnumber5

would you prefer a fractional reserve banking system where by banks loan out from savings and only need to keep a % of the deposit on hand. this both makes banks unstable and allows them to give interest on savings accounts. the lower the fraction of reserves the more unstable the banking system.

a full reserve banking system where your full deposits are held by the bank. this system is stable but banks have to charge fees to hold your monies.

note: in full reserve banking there are still loans but the capital to do so would come strictly from timed deposits where by the depositor gives up his right to the money for a given amount of time in order to receive an agreed on interest payment at the end of the holding period.

surrealnumber5

I don't know enough to make an informed decision, nor do I care enough to educate myself. I'll just go with whatever answer the accountant gives.

would you prefer a fractional reserve banking system where by banks loan out from savings and only need to keep a % of the deposit on hand. this both makes banks unstable and allows them to give interest on savings accounts. the lower the fraction of reserves the more unstable the banking system.

a full reserve banking system where your full deposits are held by the bank. this system is stable but banks have to charge fees to hold your monies.

note: in full reserve banking there are still loans but the capital to do so would come strictly from timed deposits where by the depositor gives up his right to the money for a given amount of time in order to receive an agreed on interest payment at the end of the holding period.

what compelled you to bring up something so dry and devoid of common interest i can only speculate

edit: youre a member of the old folks union

i speculate no more

BiancaDK

old folks are people too

:{

and screw banks, go to credit unions instead

You'd be hard pressed to find many who seriously back full reserve. I think a more interesting discussion would be: at what proportion should we set the cash reserve ratio? cybrcatter

[QUOTE="cybrcatter"]You'd be hard pressed to find many who seriously back full reserve. I think a more interesting discussion would be: at what proportion should we set the cash reserve ratio? rawsavon

[QUOTE="cybrcatter"]You'd be hard pressed to find many who seriously back full reserve. I think a more interesting discussion would be: at what proportion should we set the cash reserve ratio? rawsavon

[QUOTE="cybrcatter"]You'd be hard pressed to find many who seriously back full reserve. I think a more interesting discussion would be: at what proportion should we set the cash reserve ratio? rawsavon

[QUOTE="rawsavon"][QUOTE="cybrcatter"]You'd be hard pressed to find many who seriously back full reserve. I think a more interesting discussion would be: at what proportion should we set the cash reserve ratio? surrealnumber5

Fractional. Seriously, it's 2011, not the stone ages.

Is the next question going to be about ditching fiat money in place of gold and bartering?

[QUOTE="rawsavon"][QUOTE="cybrcatter"]You'd be hard pressed to find many who seriously back full reserve. I think a more interesting discussion would be: at what proportion should we set the cash reserve ratio? carrot-cake

[QUOTE="carrot-cake"]

[QUOTE="rawsavon"] Enough to pay me my monies should I so desire to withdraw my funds. ...not a penny more or lesscybrcatter

[QUOTE="cybrcatter"]

[QUOTE="carrot-cake"]
So a full system then.

carrot-cake

[QUOTE="cybrcatter"]

[QUOTE="carrot-cake"]
So a full system then.

carrot-cake

[QUOTE="carrot-cake"]

[QUOTE="cybrcatter"] He can do that right now.

rawsavon

[QUOTE="carrot-cake"]

[QUOTE="cybrcatter"] He can do that right now.

cybrcatter

[QUOTE="rawsavon"]

[QUOTE="carrot-cake"]
What if everyone else did at the same time?

carrot-cake

You missed the point.
You said what if everyone has a run on the bank.
I said they still need enough to....meh...forget it

[QUOTE="carrot-cake"]

[QUOTE="rawsavon"] I said that they have to have enough to pay ME at all times.

rawsavon

You missed the point.
You said what if everyone has a run on the bank.
I said they still need enough to....meh...forget it

[QUOTE="cybrcatter"]

[QUOTE="carrot-cake"]
What if everyone else did at the same time?

carrot-cake

[QUOTE="rawsavon"]

[QUOTE="carrot-cake"]
Oh just you, then theres more than enough for that, dont even kid yourself :P

carrot-cake

You missed the point.
You said what if everyone has a run on the bank.
I said they still need enough to....meh...forget it

The best thing to do is to not have banks/ a bank account.
But in my country we are forced to have a bank account or you can't get your salary.

[QUOTE="carrot-cake"]

[QUOTE="rawsavon"]

You missed the point.
You said what if everyone has a run on the bank.
I said they still need enough to....meh...forget it

cybrcatter

The best thing to do is to not have banks/ a bank account.
But in my country we are forced to have a bank account or you can't get your salary.

KungfuKitten

[QUOTE="KungfuKitten"]

The best thing to do is to not have banks/ a bank account.
But in my country we are forced to have a bank account or you can't get your salary.

rawsavon

[QUOTE="rawsavon"]

[QUOTE="KungfuKitten"]

The best thing to do is to not have banks/ a bank account.
But in my country we are forced to have a bank account or you can't get your salary.

surrealnumber5

I could see it working for large scale projects though.
-better ROI
-better proposal for funds
-easier to recoup money

EDIT: correct/clarify poor wording on my part

I prefer our current system.

I think we should keep money in our own piggy banks.SolidSnake35

I prefer our current system.

sonicare

I prefer our current system.

[QUOTE="surrealnumber5"][QUOTE="sonicare"]

I prefer our current system.

sonicare

[QUOTE="surrealnumber5"]

[QUOTE="rawsavon"] How would you promote economic growth w/out a banking system?

rawsavon

I could see it working for large scale projects though.
-better ROI
-better proposal for funds
-easier to recoup money

EDIT: correct/clarify poor wording on my part