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Cashfull society

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    #32
    moonage
    Registered Users Posts: 795 ✭✭✭moonage


    When someone gets a loan from a bank that money is created out of thin air. The loan magics the money into existence.

    It's a bit mad really. And you have to pay it back with interest and if you don't the bank can repossess the house/car/business etc. What a con!


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    #33
    grindle
    Registered Users Posts: 6,026 ✭✭✭grindle


    zftgewq.png

    Green line = what they say is there (pinky promise, swearsies!)

    Red line = what is actually there.

    Decent overview here.


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    #34
    dotsman
    Registered Users Posts: 3,635 ✭✭✭dotsman


    moonage wrote: »
    When someone gets a loan from a bank that money is created out of thin air. The loan magics the money into existence.

    It's a bit mad really. And you have to pay it back with interest and if you don't the bank can repossess the house/car/business etc. What a con!

    No, that's not what happens at all.


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    #35
    ever not always
    Registered Users Posts: 23 ✭ever not always


    So, all our deposits are guaranteed up to 100 grand by the government. What would happen if everyone wanted to withdraw this. Would we all be issued 'promissory notes'?


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    #36
    ever not always
    Registered Users Posts: 23 ✭ever not always


    dotsman wrote: »
    No, that's not what happens at all.

    Where does the money come from, if the bank only needs 10 percent of what they lend out?


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    #37
    dotsman
    Registered Users Posts: 3,635 ✭✭✭dotsman


    ever not always wrote: »
    Where does the money come from, if the bank only needs 10 percent of what they lend out?

    Firstly, why do you think banks only need 10% of what they lend out?

    Secondly, banks borrow funds from the ECB. If you followed the Financial news in any way, shape or form, you would hear about it on a regular basis (in relation to refi rates etc)


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