Full Reserve Banking

[Fake Boris]

I'm too lazy to read it but Fake Boris is probably wrong.

no you

[rah]

All these pages and I still haven't seen anything that proves the bank is cheating me. All I see is that the bank makes money off of me. Not a surprise. That is the goal of most businesses.

So I ask one more time. What do you think is fair annual return for a 2K investment.

And then what do you think is a fair market value for free checking and all the other services that they provide on top of the 1% interest return?

I think I'm getting decent value. Far from being cheated. Its those that pay for these services are the ones being cheated.
(which was my only original point)

[N35t0r]

What makes you worried about my grasp of the material?

I sincerely had a hard time getting your point because your calculations looked like they confirmed my point.

I admit I wrongly used the term "average deposit" rather than "average balance". But that was in the discussion with you, not with Rah. Talking to Rah, I clearly said "if your average balance is 2k, the bank (assuming an economy with just 1 bank of course) earns interest on 15-20k.

Which is still wrong.

[Sava]

All these pages and I still haven't seen anything that proves the bank is cheating me. All I see is that the bank makes money off of me. Not a surprise. That is the goal of most businesses.

So I ask one more time. What do you think is fair annual return for a 2K investment.

And then what do you think is a fair market value for free checking and all the other services that they provide on top of the 1% interest return?

I think I'm getting decent value. Far from being cheated. Its those that pay for these services are the ones being cheated.
(which was my only original point)

Banks get money from the government... interest free... sometimes at negative rates. Our tax dollars. They lend that money back to us... at interest. Everyone essentially pays the bank for... what, exactly? Existing? Providing a "service" in the form of lending us our own money? Having free use of the money we give them? Giving us return rates lower than the rate of inflation?

I guess it depends on your definition of the word "cheat". Granted, some people think getting pissed on is the same thing as getting rained on. Who am I to judge?

Banking is a scam. It should be illegal, for the most part.

[rah]

Yes, banks are scums but it doesn't change my thinking.
I can't provide the services a bank can. So the only question to me is whether I'm getting value or are they cheating me.
So it comes down to, what is the value of my letting them hold a couple of grand. Even if I get a great return investing someone else I doubt I'd make more than 10% so the most I'd get from that 2K is a around 200. And it would probably be less and there is always the risk involved. If I had to pay someone to provide all the services the bank does it's worth at least that much to me.
So again, how am I being cheated. Since that's all I asked OB. He has taken it to many tangents but has yet to explain to me how I'm being cheated.

All he has explained is that the bank can make more money off my investment than I can.

[Sava]

Yes, banks are scums but it doesn't change my thinking.

uhmmm why not?

I can't provide the services a bank can.

Strawman. Public institutions can. Even highly regulated private entities can.

So the only question to me is whether I'm getting value or are they cheating me.

It boils down to whether you think efficient use of taxpayer money is valuable.

So it comes down to, what is the value of my letting them hold a couple of grand.

If that is all you care about, I better not see you bitching about how your tax dollars are wasted. Ever.

Even if I get a great return investing someone else I doubt I'd make more than 10% so the most I'd get from that 2K is a around 200. And it would probably be less and there is always the risk involved. If I had to pay someone to provide all the services the bank does it's worth at least that much to me.

I'm noticing this is a trend. A lot of people seem to be content with paying more for inferior service. It's certainly your right to have low standards.

So again, how am I being cheated. Since that's all I asked OB. He has taken it to many tangents but has yet to explain to me how I'm being cheated.

All he has explained is that the bank can make more money off my investment than I can.

OB/FB is/are loons. I'd rather not associate my position with theirs. Or his. Or whatever.

Too many damn Borises around here if you ask me.

[rah]

uhmmm why not?

I don't have a lot of choices and I can't provide the services myself.

Strawman. Public institutions can. Even highly regulated private entities can.

Please list those that might be available to me.

It boils down to whether you think efficient use of taxpayer money is valuable.

What does that have to do with the reality of my choices here?

If that is all you care about, I better not see you *****ing about how your tax dollars are wasted. Ever.

Gee I use a bank so I can never ***** about wasted tax dollars again. A bit extreme don't you think?
Again, what does that have to do with the reality of my choices here.
I have 0 influence on policy decisions.

I'm noticing this is a trend. A lot of people seem to be content with paying more for inferior service. It's certainly your right to have low standards.

Offer me superior service and I will pay for it (up to a reasonable price)

What are the alternatives?

[C0ckney]

it's possible to live as a cash man; i did it for years. it's pretty impractical for most people though, especially these days.

[rah]

I get a pay check. I don't get paid in cash.
But I do lean towards cash transactions whenever possible except for things like mortgage and a few other online payments.

[Sava]

I'm speaking more about policy changes, rah. I should have specified that

[rah]

Yeah. And I agree on most of that.

But I still contend that with my current available choices, I don't feel like I'm being Cheated and I'm waiting for OB to prove that I am.

[Sava]

Yeah. And I agree on most of that.

[Dauphin]

I get a pay check. I don't get paid in cash.
But I do lean towards cash transactions whenever possible except for things like mortgage and a few other online payments.

I have visions of you as a cash in brown envelopes fella now.

[Sava]

I have visions of you as a cash in brown envelopes fella now.

Just... don't get pulled over by the po po if you have that cash on you. If you carry around a lot of cash, you must be a drug dealer.

http://reason.com/blog/2015/02/23/judge-oks-cops-decision-to-seize-truck-c

(asset seizure)... literally highway robbery in some cases

[Pedotard]

Banks get money from the government... interest free... sometimes at negative rates. Our tax dollars. They lend that money back to us... at interest.

Are you talking about bailouts that happened during the 2008 financial crisis or are you claiming that banks getting free loans from the government is the norm?