/biz/ - Business & Finance

[Anonymous No.1828826]

how do banks get their capital?
if banks give credit, can they give themselves unlimited credit when it comes to lending?
can banks print money digitally?
if banks print money, why can't every citizen can create his own bank and just print his monthly salary?

[Anonymous No.1828835]

>>1828826
Have you heard about those things called google and wikipedia?

[Anonymous No.1828852]

>>1828826
You put money in a savings account

>bank uses that capital to lend, etc. rewards you with some interest

[Anonymous No.1828859]

banks create money outta thin air.

But they must maintain deposits and have a certain ratio of loans to deposits.

this is fractional reserve banking.

[Anonymous No.1828865]

>>1828835
but it doesn't explain shit
a bank can't reach closure or get fined so its always operational and always making money

[Anonymous No.1828922]

>>1828826
>print
It's mostly digital now

[Anonymous No.1828936]

>>1828826
>why can't every citizen can create his own bank
It's been early on in the US, it lead to an unregulated money supply growth, leading to an unstable economy in general. Enter Central banking.

[Anonymous No.1829008]

>>1828826
Fucks sake people.

Do yall really not know???
K, my numbers are old so may be a little off.

Essentially u have a savings or other account Nd they reward you with 2% or wtf ever interest. Well under inflation.

Then, those faggots can lend about $20 for every $1 you hold in there!!!!

Not only this but some of these guys have the fucking balls to Charge for a savings account!

They charge you to borrow your money at less interest than a student loan.

And the sheeple just keep handing it over. Truly baffleing.

The federal reserve bank wich is not federal, has no reserves, and isnt even a fucking bank regulates the standard interest rates for all other banks.


Shit started long ago. Back in the gold coin days or wtf ever.

Banks were started so you didng have to carry 400 pounds of fucking change. U give them coins, they trade u for paper money and its redeemable for said coins at any time.

With the ability to trade paper money banks quickly found out that people would dump off coins and never come get them because why the fuck would u.

This lead to fractional loaning or wtf ever where these assholes loan out 20 times what they can actually cover...

Part of the great deoression was because once shit hit the fan and people bunrushed the banks for their money, oh noes.... we cant cover it. What a fucking shock...


And all my friends and family wonder why i dont trust the fucking banks.

Why in right holy fuck would you.

Its the mother of all ponzi schemes.

Any retard can pull 2-3% apr on shit investments and lose to inflation without giving strangers your hard earned money.

I still use the banks because muh debit card and loans. But not much...

After my wife made me take the tour of the fed with here and laughing at all of the shit propaganda it hit me. Between me and 1 sheet of glass were HUNDREDS OF FORKLIFTS AND THOUSANDS OF PALLETS OF MONEY.

Billions and billions just stacked on warehouse shelving.

[Anonymous No.1829045]

>>1829008
ron paul pls go