Timeline for Banks are allowed to print money out of thin air. Black magic or what? [duplicate]
Current License: CC BY-SA 4.0
11 events
| when toggle format | what | by | license | comment | |
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| Mar 31, 2020 at 20:30 | comment | added | Frank | Why was this question closed? Just because it is duplicated, why close it? | |
| Mar 31, 2020 at 16:56 | vote | accept | Hairi | ||
| Mar 31, 2020 at 15:42 | history | closed |
user18 Giskard Herr K. Kitsune Cavalry♦ |
Duplicate of Sanity of lending out made-up money | |
| Mar 31, 2020 at 12:20 | comment | added | Frank | Be advised that the US reserve requirement is 0% for all institution categories. Prior to this month banks had to have reserves of either 0, 3 or 10 % depending. However even then independent banks managed their own reserve requirement by product category (eg 0% for mortgages or commercial loans) federalreserve.gov/monetarypolicy/reservereq.htm @Giskard - your scenario cannot apply because no deposit is ever transferred. | |
| Mar 31, 2020 at 9:34 | comment | added | Giskard | Hi! Ideologue and otherwise foolish person here: seems to me interest is an unnecessary obfuscation here. If I (the bank) get 20 dollars from someone (depositors), lend you the 20 dollars, you hand it back to me, and I go tell my creditors that I am bankrupt and will not be repaying them then yes, indeed, I made some money. This is not magic, or surprising in my opinion. We probably should have written a better contact at the start that does not let me so this, or perhaps even without an explicit clause this is illegal. | |
| Mar 31, 2020 at 8:39 | comment | added | Frank | Hairi suggest you post this on Money and Personal Finance. This economics stack only has a few members and is ridden with ideology. The Money and Personal Finance is actually frequented by people from the finance sector who can talk to you about banking back office operations. | |
| Mar 31, 2020 at 7:54 | answer | added | Frank | timeline score: 3 | |
| Mar 31, 2020 at 7:50 | review | Close votes | |||
| Mar 31, 2020 at 15:45 | |||||
| Mar 31, 2020 at 7:45 | answer | added | David | timeline score: 1 | |
| Mar 31, 2020 at 7:20 | review | First posts | |||
| Mar 31, 2020 at 8:14 | |||||
| Mar 31, 2020 at 7:19 | history | asked | Hairi | CC BY-SA 4.0 |