Money is just green pieces of paper. It's a liability in the sense that it's losing value to inflation sitting in a vault doing nothing.
However, the Fed used to mandate banks keeping a 10% reserve requirement (hence the term "fractional reserve banking") to mitigate bank runs. It's essentially the banking version of an emergency fund; you're not supposed to invest or profit from insurance.
(As an aside, the number of dipshits I see wanting to invest their e-fund pre-2022 so they "don't lose to inflation" was too damn high.)
But then the Fed dropped the reserve requirement in March 26, 2020 in the guise of Doing Something™ during the manufactured COVID pandemic and lockdowns. Now they're surprised_pikachu.jpg at the unintended consequences and moral hazard of yet another government-created problem.
You mean the blue cities of empty office towers, street level dystopia and lawlessness, and bankrupt lefty government failures?
Oh yeah there's a real estate crash coming and it won't be the sub-prime shmucks in Stockton this time, it will be huge swaths of uninhabitable highrise Democrat cities shrouded in uninsurability, revenue deficits, and legalized crime.That's the commercial RE crash tsunami headed for urban centers across the land.
The per capita number of new single-family home permits pulled is the lowest since 1974. Lumber prices have crashed due to low bulk demand, and the builders building those "house a day" subdivisions are now sitting on units, due to the houses being un-affordable. The real estate crash is comin', and when it does...
Banning cash and barter (i.e. the "black market") is a tacit admission that your country is a failed state and you're just trying to get ahead of the hyperinflationary death spiral.
Lumping everything in to one giant conglomerate bank. Therefore one point of failure.
The collapse continues.
When all banks are condensed into MEGA BANK ONE, governments will only need to target one bank.
Fun Fact: The Monopoly Guy is based on JP Morgan.
Get this.
JP Morgan will pay approximately $10 B
For $295B in total assets
The deposits alone are >$95 B
Gee. Awfully convenient pickup.
https://www.reuters.com/business/finance/california-financial-regulator-takes-possession-first-republic-bank-2023-05-01/
Deposits are a considered a liability to a bank because it's money they potentially have to pay out when people come to withdraw.
They are considered a liability to withdraw when the money is leveraged towards loans. If they money isn’t lent out, then why does it matter?
From the perspective of fractional reserve banking, didn’t chase just increase their loan capacity by $92B/0.xx percent?
Money is just green pieces of paper. It's a liability in the sense that it's losing value to inflation sitting in a vault doing nothing.
However, the Fed used to mandate banks keeping a 10% reserve requirement (hence the term "fractional reserve banking") to mitigate bank runs. It's essentially the banking version of an emergency fund; you're not supposed to invest or profit from insurance.
(As an aside, the number of dipshits I see wanting to invest their e-fund pre-2022 so they "don't lose to inflation" was too damn high.)
But then the Fed dropped the reserve requirement in March 26, 2020 in the guise of Doing Something™ during the manufactured COVID pandemic and lockdowns. Now they're surprised_pikachu.jpg at the unintended consequences and moral hazard of yet another government-created problem.
Lol its 2008 without the real estate crash
You mean the blue cities of empty office towers, street level dystopia and lawlessness, and bankrupt lefty government failures?
Oh yeah there's a real estate crash coming and it won't be the sub-prime shmucks in Stockton this time, it will be huge swaths of uninhabitable highrise Democrat cities shrouded in uninsurability, revenue deficits, and legalized crime.That's the commercial RE crash tsunami headed for urban centers across the land.
From your mouth to God's ears.
The blue cities can always cry to the Feds for
money printer go brrr"stimulus injections", but it won't stop the brain drain.The per capita number of new single-family home permits pulled is the lowest since 1974. Lumber prices have crashed due to low bulk demand, and the builders building those "house a day" subdivisions are now sitting on units, due to the houses being un-affordable. The real estate crash is comin', and when it does...
On top of this, there's a huge car loan bubble. That one is a bit sneakier. I don't hear many people who aren't in that industry talking about it.
They really should remember it's a privilege that people use banks when they could easily withdraw everything and go back to a barter system.
This is why some countries want to ban cash…
For exactly that reason, lol.
Much harder to ban bartering, but if they could..? You betcha they would.
Banning cash and barter (i.e. the "black market") is a tacit admission that your country is a failed state and you're just trying to get ahead of the hyperinflationary death spiral.
That sounds REALLY snarky, like someone saying a jab that they think they can get away with but really they sound like a colossal bitch
E.g. some service industry workers