tag:blogger.com,1999:blog-1141932539860553199.post547002469185724997..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Banks. What are they for?Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1141932539860553199.post-55434092120226488602013-09-24T12:01:53.315+01:002013-09-24T12:01:53.315+01:00Thanks for the commemts. I thought that, on the w...Thanks for the commemts. I thought that, on the whole, it was quite droll.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-42964891390198810522013-09-24T10:51:03.363+01:002013-09-24T10:51:03.363+01:00Q: You mean customers lend banks money?
A: In effe...Q: You mean customers lend banks money?<br />A: In effect. They put money into their accounts, so it is really lent to the banks.<br />Q: And what do the banks do with it?<br />A: Lend it to other customers.<br />Q: But you said that money they lent to other people was Assets?<br />A: Yes.<br />Q: Then Assets and Liabilities must be the same thing.<br />A: You can’t really say that.<br /><br />Excellent.James Highamhttps://www.blogger.com/profile/14525082702330365464noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-3135473462159909972013-09-24T10:34:23.578+01:002013-09-24T10:34:23.578+01:00What BJ says.
"Liquidity" just means t...What BJ says. <br /><br />"Liquidity" just means that there is a middleman between lenders and borrowers to smoothe things out, average out bad debts and so on. <br /><br />Whereby if a company sells stuff on credit, he is a lender and the person who buys on credit is a borrower. This is also a kind of FRB with zero reserves whatsoever.<br /><br />Good punchline though.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-70931030156105295242013-09-24T09:17:44.723+01:002013-09-24T09:17:44.723+01:00In principle banks don't need deposits to make...In principle banks don't need deposits to make loans. In principle A bank can issue a check and then owe the money to the recipient bank where it is deposited.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-71187200639714762422013-09-24T00:35:58.189+01:002013-09-24T00:35:58.189+01:00I don't find fractional reserve banking an iss...I don't find fractional reserve banking an issue.<br /><br />Capitalism needs liquidity(I'm not sure what that means, but it sounds good).<br /><br />It's what they lend/secure on that's the problems as far as I can see.<br /><br />Monopoly pie.benjhttps://www.blogger.com/profile/11544297406005346095noreply@blogger.com