This can mean infinite loans, infinite inflation and infinite instability if the shit hits the fan.
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
THERE ARE NO RESERVE REQUIREMENTS FOR BANKS IN THE USA SINCE 2020!
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Don't you know? We've just recently done away with the reserve system, just as nazis on this board always wanted, and now we're just wholesale covering failed deposits for billoinaires
This wasn’t a “bailout,” in the way that term was used in 2008. The government is insuring deposits, while letting the investors and management take a bath. The federal government set a precedent for backstopping ALL deposits, beyond the FDIC’s existing commitments.
VERY BASED!
I dont see how this doesn't destroy every current banking business model. Why would a depositor choose an entity choose a low stable growth lending model over a yolo hail mary model when they are insured on all deposits either way? Conversely, why would any stakeholder want banking stocks knowing potential clients get all the reward and none of the risk going to a yolo branch.
From where i sit, the future is companies bootstraping banking vechiles where stakeholders are nothing more than papers in a cayman island building, and, once chartered they fractional reserve lend themselves the limit and all run hail mary's. FDIC has your downside, you can now offer attractive alpha to depositors
so we are only on the hook for up to 18 trillion if the banks go tits up
>We've just recently done away with the reserve system, just as nazis on this board always wanted
Are you fucking stupid? The "nazis" wanted commodity backed money or stable money supply. They didn't want unrestricted debt money by erasing the reserve system.
But you know this well. You just misrepresenting arguments to advocate for muh holy socialism.
It also means that every single bank is in a permanent state of insolvency, and all it takes is a change in general public sentiment for the entire system to break.
Anon, only idiot bankers would over-run by intention.
I guarantee there are a few who got caught in that, don't get me wrong.
They do, but why would you? The fuck you gonna do with all these naggerS AROUND LIKE YOU?
>They do, but why would you?
Because I can?
Everything has been run in bankruptcy for ages. It's why shit has to happen every 70 years or so when the bankruptcy is forgiven, so that the event can justify operating in bankruptcy again.
Yes
And?
Thanks for playing
So you're telling me I can start my infinite credit pyramid now?
This is the only thing I'm waiting on. Theres a reason why I kept my goy score above 800 and have 6 cc I can max out anytime
Covid is to blame. Let's move on
I can’t believe you’re still talking about this. You should just get over it, be an adult
>https://www.federalreserve.gov/monetarypolicy/reservereq.htm
shalom goy, you are a bit late.
the crash is already in full process.
all we needed was you subhumans lending like crazy in the last 3 years for whatever ~~*reasons*~~
Now that you greedy little fuckers pushed all of the asset prices up, we will give you a nice little credit crunch and burst the bubble.
Its the classic game we already played in Japan in the 80s and 90s. (which is the reason why Sony isnt the master of the universe in terms of consumer electronics anymore as they were in the times of Walkman and co)
He watch this to educate yourself sometime:
I’m sure plaza accord which repegged yen to 120:1$ didn’t do anything. I’m also sure Anglos aren’t trying to do this with brics via Ukraine
I believe they tacked it up to 0.5% or something some months later.
But more to the point, they got this IOER, or https://fred.stlouisfed.org/series/IORB now, where they print you interest for free for holding money there, so if you cant find a return below this value you dont print the money, you just stash it there risk free, this subtends the printing
What determines how much money a bank is allowed to loan out, now?
Nothing!
they have interal measures, big banks is more strict but even boa only has ratio of 10%
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2022/06/bank-of-america-comments-on-stress-test-results--plans-to-increa.html
Surely the big banks have learned their lesson by now
Surely they will have all my money if I decide to withdraw
Just make sure the right people die when it all goes tits up.
Does anyone ever actually take out the "right people" though? Those people burrow in when SHTF.
money is completely fake and debased and shouldnt be thought of as anything except a medium that you hold briefly with the intention to acquire some real asset
its only 0% for small banks. what kind of paperwork do you need to start a bank and just printing credit?
for large banks I think its 4%, which is still really retardedly low
You are lying Goldberg!
>This action eliminated reserve requirements for all depository institutions.
And yet their total cash deposits are still around 12%, which is why you see only regional banks defaulting
https://fred.stlouisfed.org/graph/?g=wVqP
This must be something else, because it's 0.4% in 2008 when the requirement was much higher.
This is total balance of cash reserves held with the fed divided by total assets, which is slightly lower than the total amount of liabilities, but also does not include physical cash.
2008 was still Basel II, which calculated reserves differently and did not mean cash or cash equivalents
everyone i've mentioned this to since then has either 1) not known wtf i was talking about or 2) been incredulous to the point of not believing me and (often) not even looking it up
Fucking normies don't know anything, vote fore the worst things imaginable and then lecture and gaslight you about everything.
>ON FIRST HEARING THE TRUTH - "that's not how it works at all! you're insane"
>AFTER HAVING TO ACCEPT THE TRUTH - "of course that's how it works. what are you fuzzing about?!"
Literally always! It's so fucking annoying.
What the fuck is this circle jerk, if you’re so smart go run a fucking fund retards, FINRA is right over there and the paperwork is easy.
Are you retarded or evil or both?
I have a lot of money. Modern banking system is still a scam.
see
especially
>Are you retarded or evil or both?
because you've missed the point so bad i can only hope its on purpose for your own sake
>not all in highly leveraged long-dated options
>doesn’t own soxl, jnug, dfen
Ngmi