rastinza @rastinza@social.cleverlibre.org

@namark
I never said you know nothing about banks.
Since I'm talking with someone on the internet I know nothing about, I find it better to write down the whole topic we're talking about, so we have a common understanding of what we're talking about.
If you feel I wanted to offend you in that way, relax not everyone is here to insult you.

Deposits are not investments: you do not get interests over deposited money, you just pay the bank.
Savings accounts are an investment: you're loaning money to the bank, but that's not what I was talking about.

We disagree here: you say the system is what it is, it's fine get over it.
I also recognise the system is this, however I'm not fine with how it works.
I do not have a better alternative, I'm not an economist myself.
I do not have to provide an alternative to state I don't like this system; for example when slavery was common, some people were opposed to slavery since they didn't like the conditions those people had to live through, even though they could not provide an alternative to the use of slaves.

I asked you why, in your opinion, is this system better than letting banks only loan cash they do have. What is the advantage of this system?
You did not reply to this question anywhere in your messages, I thus don't understand your insulting last paragraph.

If you have no interest in talking about this, I see no reason to keep talking. You're frankly quite terrible in the exposure of your ideas and you don't provide much information to think about.
@freeschool

@namark
I don't understand all this aggressiveness on your side.
We disagree on a point here: depositing money in a bank is neither a promise of getting money back nor an investment.
Depositing money means paying someone to safely keep your money under their pillow.
The money is still yours.

By allowing them to spend money they don't have, this is detrimental for people who are keeping their money there, as they're covering for the risk taken by the bank.

You say you're very happy to see me asking reasons in favour of this system, however you didn't provide any.
@freeschool

@namark
Promise or not promise, this is generating cash which was previously inexistent.
This is detrimental to people who are just depositing money.

Why is letting someone loan money without owning it good anyway?
@freeschool

@namark
That's not exactly what banks do.
Banks generate money they do not have through loans.
A bank might have 100€ and lend out 150€
It could be possible, in theory, for banks to lend more money than the ones available in the whole world.

This happens for a few reasons: if a bank has 100€, they can lend you that much, you can deposit this money in another bank.
When you deposit the money you do not physically carry over the money, simply a number on the bank system gets updated; the money stays inside the original bank.
At this point the second bank has 100€ and it can legally lend a fraction of those money to someone else, let's say 90€

Thus, the original bank has 100€, but overall 190€ have been given out.
Thus banks create money out of nothing.
This system works out, untill people for some reason want their money back; when that happens the banking system crashes
@freeschool