[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 119 KB, 768x960, 2-girls-with-glasses.jpg [View same] [iqdb] [saucenao] [google]
15514401 No.15514401 [Reply] [Original]

If you give a bank 100 deposits of 1000 dollars, you got a 100,000 dollars.
Most people think that the bank invests 90,000 and keeps 10,000 on deposit.
What actually happens is the bank holds onto 100,000 and issues 1,000,000 dollars worth of loans.

>> No.15514412

>>15514401
And this was all back when we used the federal reserve, now we use debt: equity ratios.

>> No.15514420

>>15514412
The whole thing is temple run by superstitious nonsense.

>> No.15514472

>>15514401
preaching to the choir there buddy, also show me hard evidence that this happens, exactly as you say. You know what hard evidence is fag?

>> No.15514521

>>15514472
google you stupid fucking lazy retarded faggot

>> No.15514642

>>15514401
That original $100,000 is loaned out at about $1million or more. Fractional reserve banking. Google it.

>> No.15514807

>>15514521
people want conversation dumbass

>> No.15515205

>>15514642
That’s basically what he said, but he said it correctly

>> No.15515353

>>15514807
Exactly this!

>> No.15515366

>>15514401
You mean they give out loans over time? Or how does this add up?

>> No.15515408

>>15515205
Yeah I didn’t see he mentioned this.

>> No.15516305
File: 62 KB, 300x300, I HAVE A MIGHTY NEED.png [View same] [iqdb] [saucenao] [google]
15516305

>>15514642
Just googled it and came to the frightening realization that money isn't even real. Investing in PMs, stocks, and other assets ASAP

>> No.15516333

>>15516305
>literally just found out how money works
>here's my thoughts on investing
Uh yeah thanks

>> No.15516338

Celsius network is kind of cool. You need to trust them
With a lot of coin to make anything though

>> No.15516357
File: 62 KB, 794x540, 1567608184794.jpg [View same] [iqdb] [saucenao] [google]
15516357

>>15514401
this is anti semitic

>> No.15517312

>>15516305
Have you heard of Bitcoin ? It's a new form of money with a fixed supply. I bet you it's gonna be higher in a couple years hehehe.

>> No.15517618

>>15514401
>>15514642
That's not what actually happens. Fractional Reserve Banking is a meme.
In reality reserves are never the limiting factor in credit creation.
On another thread a few hours ago, someone else posted a link to the explanation o what really happens. Here it is again:
https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf

>> No.15518583

>>15514401
https://www.youtube.com/watch?v=mQUhJTxK5mA

for those who think this is nuts (like I did)