Let’s be real here. After seeing this fiasco, what is the point of keeping your savings in a bank as opposed to a fireproof lockbox screwed into the floor under your bed with an esoteric bit head?
I get 30 cents every month, it’s not like interest is getting me a bunch of free money.
Cool it with the anti-semitism. The banks lend out your money and make 10% on it. Why would you deny them of that?
Banks take $10 lend out $1000 and make 10% on the $1000 which is $100 from your $10.
and if/when this scam crumbles, someone always bails them out. usually it's the state, bailing them out through the very taxpayers who are the targets of this usury
this massively magnifies the moral hazard, as banks have 0 incentive to behave more carefully knowing that governments will often bail them out for the sake of stability
how is this acceptable?
fuck forget about "acceptable" and morality, this isn't even sustainable
How do they get the 1000 to loan out?
it go Brrrrrrrrrr
you store 10$ in a bank with 1% reserve ratio
bank has 10$ available, they store 0.1$ and are legally allowed to lend out the rest 9.9$
they lend it to a couple who buy a house from a person, that person now stores his 9.9$ in another (or even the same) bank
bank now has another 9.9$ available, they store 0.099$ and are legally allowed to lend out the rest 9.801$
this is called the money multiplier effect and it goes (money available/reserve ratio). in this case it is 10$/1% (1%=1/100), which goes to 1000$
in countries with a reserve ratio of 0, you could lend out to infinity thus the only limit is the interest rate on loans (often imposed by the government)
>you store 10$ in a bank with 1% reserve ratio
>bank has 10$ available
no, the bank formerly had $1000 available, now its infinite
Banks take 0$ lend out 1000$ and make 100; your deposits are a nuisance
/retard
Post nose
Not my problem. Been holding physical gold since i was forced out of my mothers womb.
Forget the lockbox, I'm putting my money in Squallets.
this tbh, no self-respecting thief would steal someone's sqwallet
fuck banks. i'm squallet.
Inflation
You don’t… actually believe this do you?
Of course not. Inflation is imaginary and everything is getting cheaper
And your money sitting in the bank is magically increasing value alongside inflation
ive noticed that in economics people often just parrot jargon (that they may not even understand) and technical terms under the expectation that you will have no idea what it means
answering "why would you store your money in a bank?" with "inflation" makes absolutely 0 sense whatsoever, unless these 2 posters (
,
) are stuck several decades in the past when banks actually offered decent interest rates on your deposits
combine this with the armies of shills we've had ever since the SVB collapse and you suddenly realize that this is nothing but psyops
Yeah I’ve been thinking about it, my interest rate is nowhere near inflation so the value of my money is going to go up and down just the same whether it’s ‘cash’ in the bank or cash in my mattress.
That is, of course, I’ve got everything right and I’m not retarded enough to miss some big reason.
How does the bank help you combat inflation?
Shilling stocks to dump on you.
Unironically what my bank does, And the sales pitch is - hey Anon, fight the inflation
"High yield" account rate is 0.01%
You just can't win being Europoor
Bro you’re losing the value of it to inflation, better off letting me lose all of it in bad bond investments
I'm wondering if bail-ins are possible in the coming months of contagion. I have no preparation for a bail-in so I'd be screwed.
How does e-commerce work if all your money is in a box under your bed?
ssshhhh anon—let them larp
how wacky are we talking?
Can I walk into a bank and ask to withdraw 50k in cash or will someone yell and me?
If you have your money with a BIG bank and it somehow fails and you don’t get your money back, you have way bigger things to worry about, entire economy will crash at that point. In general you shouldn’t keep more than a few months expenses in cash anyway, once you get to a certain NW it becomes less of a worry. I have like 20k in cash in a few places, along with 500k in ETFs. If one of my banks fail I lose like 10k, but that’s worst case ie the gov fails to reimburse depositors. I do keep a bit in physical cash but only a few thousand. There are risks to keeping it in cash: fire, theft, not earning interest, etc
>After seeing this fiasco, what is the point of keeping your savings in a bank as opposed to a fireproof lockbox screwed into the floor under your bed with an esoteric bit head?
You can do that, but it would mean that you're a reactionary moron and you're just as likely to lose the cash. Actually, you're probably more likely. The reason banks exist is because most people are morons and would get robbed/scammed/taken advantage of. Yeah fractional banking has flaws but I can't believe you think that reverting to monke is the answer. We've been there and we moved on for a reason.
>We've been there and we moved on for a reason
Whats the reason?
we haven't moved on we've compromised, maybe even regressed
there used to be 0 speculation banking services (where your money was not lent out), these do not exist anymore
banks used to give lucrative interest payments in exchange for risking your money in them, now their interest payments approach 0%
banks used to have reserve requirements around 10% for safety reasons, now reserve ratios are 0% in US and 1% in EU
the whole point of using paper for money was that it represented ownership of gold or silver. going to fiat wasn't "moving on" it was a result of the US defacto defaulting on its gold debt that it couldn't repay to france
everything has, by all reasonable means, gotten worse and less stable. it's just that most people somehow failed to realize
>reserve requirements around 10% for safety reasons, now reserve ratios are 0% in US
happened like a few days after the coof was declared official
The banks in my area have paid as close to zero percent interest on my money, while making it harder and harder to get it out of the bank. I closed my account. I had to go to the main branch of PNC to get it cashed, because my local PNC didn't have "that kind of money on hand". It was 5,000 dollars. If PNC had to scrape two cash drawers, at the main office, and pay me 1K in 100's, 2K in 50's, 2K in 20's and 10's... imagine what a clusterf*ck you'll go through pulling out actual "large accounts".
That’s normal, banks don’t keep huge amounts of cash because of robberies. If you want to withdraw more than a few thousand you usually need to call a day in advance
When a nagger steals your lockbox, the government won't bail you out.
Convenience. I keep 3k in the bank to buy stuff with. Savings is not in a bank
Do you think my weed will fit in a squallet?
Sqwallet diversity is important.
because keeping hundreds of thousands of dollars of cash in my house seems like a really really shit idea
Depends on WHERE you're keeping it. Toilet top tank? Fridge? Predictable. Inside the door in a home-built compartment, accessible only by removing the door because the opening is on the hinge side? Unlikely to be taken by regular burglars unless they steal basement doors now, too.
They will now.
They should since like 2009 because I stole the idea from Burn Notice.