How do I become a bank?

[Lancer]

I heard that American Express is to become a bank so they can get a handout too, the poor bastards. So, if they can, why can't I? Why can't we all be a bank and get our money back?

Disgust...

[Berzerker]

That was my first thought when I heard about it

[Aeson]

You can become a bank by lending me money...

[Lancer]

Originally posted by Berzerker
That was my first thought when I heard about it

Great minds think alike. So do ours.

Aeson Banks don't loan anymore, haven't you heard?

[Seeker]

I once lent my brother $100 and he didn't pay it back...

Now, I was playing to leverage that $100 dollar 'asset' (his debt) into $900 of loans to other people in the future.

Now my brother is a pretty wild guy, so I bought $50 of insurance from my uncle that he would pay out if my brother didn't (he promised he would).

Then I tried to offer the right to this insurance at a family barbecue. I had so many takers that there are now a dozen people owning different percentages of my asset!

Then the Jones across the street heard about it and began betting on whether or not my uncle would pay out if my brother didn't pay out. And they're a big family.

So I decided to go down to the Town Hall and offer everyone there the right to buy percentages of the Jones' bets. This was so popular that people were even taking out loans to buy percentages of rights to bet on whether my uncle would pay if my brother couldn't.

Then my brother told me to screw off.

And all my loans, bets, and 'assets' based on my brother's promise came due.

So am I 'too big to fail' yet?

I WANNA BAIL-OUT!!

[Wiglaf]

That was the weirdest post ever. Weight yourself down with a hopeless physicist academic like KH and jump off a cliff. I bet five newtons he'd think of something he thinks is clever and ironic to say before he hit the bottom, and you will roll your eyes despite the obvious imminent danger presented by the situation.

[Kidlicious]

Re: How do I become a bank?

Originally posted by Lancer
I heard that American Express is to become a bank so they can get a handout too, the poor bastards. So, if they can, why can't I? Why can't we all be a bank and get our money back?

Disgust...

I think you have to buy a lot of derivatives so that if you go broke the whole system goes down with you if the taxpayers don't bail you out.

[Japher]

You can't become a bank because you don't have the ability to create money.

You do have the ability to become your own bank, but that would require people to want your money; meaning you'd have to have money. So, you're screwed there too. Unless, you live in the Phillipienenens.

[MrFun]

Originally posted by Japher
You can't become a bank because you don't have the ability to create money.

You do have the ability to become your own bank, but that would require people to want your money; meaning you'd have to have money. So, you're screwed there too. Unless, you live in the Phillipienenens.

Always the negative realist.

[Japher]

yup. u know me

[Kidlicious]

Originally posted by Japher
You can't become a bank because you don't have the ability to create money.

You do have the ability to become your own bank, but that would require people to want your money; meaning you'd have to have money. So, you're screwed there too. Unless, you live in the Phillipienenens.

He can create money by loaning me money cause I'll spend it. The multiplier effect.

[Japher]

The problem is, that he's loaning HIS money and NOT a portion of someone else's money.

If a bank is given/deposited $1000 they can lend say $200 per gov decree. They have thus created, because the Fed lets them due to Required Reserve limits, $200. There is now $1200 in the system, the deposited $1000 and the $200 lended. Overnight lending and the fact that runs on a bank rarely happen can keep the bank with liquid reserves.

If Lancer has a $1000 and lends $200 there is nothing Lancer can do to spend a $1000 at that point since he only has $800. Thus, Lancer didn't create money by lending.

So, Lancer can't create money because it isn't his money to create. Our dollar is fiat currency and because of this it is the governments to create and to destroy.

[Kidlicious]

**** the government. We'll make our own money.

[Lancer]

That's brilliant, Seeker!

Japher, I don't want to lend money and niether do the banks. They aren't getting paid back you see. We all just want Uncle Sam to hand us money, for nothing, checking for free.

[Kidlicious]

Oh, you want to be a pigdog.