What are banks for?

[tbrambo]

http://youtube.com/watch?v=j94ZJ2Vwtks

 

[apc3161]

I hate this kind of bullshit. Banks can serve two very important roles that I can think of on the top off my head

1) They provide you with a place to secure your earnings. Are you going to take your salary and shove it underneath your bed every week? Of course not, you give it to a bank to hold onto it for you.

2) A bank can work as a mechanism by which those with extra savings (the depositers) can find people who want to take out loans. The bank acts as a middle man overseeing the transaction and letting these people find each other. Of course its not that simple because hardly are the transactions 1v1 but the point is still the same. Thus people who have savings can use a bank to loans out their savings and make some money through interest. Otherwise that money would just get wasted sitting in a checking account or underneath your mattress.

 

[revolutionman]

Are you going to take your salary and shove it underneath your bed every week?

Ummm, well sure.

Call me paranoid or ignorant or whatever, but I dont trust the banks, who are notoriously in bed with the Fed and Government, with my wealth.

Say the wrong thing in front of the wrong person and suddenly your life savings will be seized, and you'll be lucky if you ever get any of it back. Or if you own back taxes or if you have fines or penalties levied against you, hell its getting to the point where they will freeze your assets if you are late on your cable bill. Most of America doesn't have much in the way of savings anyway. A couple of thousand dollars maybe. I'd rather spend a couple of hundred dollars on a good safe.

 

[Ozwest]

I hate this kind of bullshit. Banks can serve two very important roles that I can think of on the top off my head

1) They provide you with a place to secure your earnings. Are you going to take your salary and shove it underneath your bed every week? Of course not, you give it to a bank to hold onto it for you.

2) A bank can work as a mechanism by which those with extra savings (the depositers) can find people who want to take out loans. The bank acts as a middle man overseeing the transaction and letting these people find each other. Of course its not that simple because hardly are the transactions 1v1 but the point is still the same. Thus people who have savings can use a bank to loans out their savings and make some money through interest. Otherwise that money would just get wasted sitting in a checking account or underneath your mattress.

You are full of shit.

Banks are a mechanism aiding government in the tracking of your hard earned.

If you have ever owned a business.

You will understand.

 

[G-Wohl]

You are full of shit.

Banks are a mechanism aiding government in the tracking of your hard earned.

If you have ever owned a business.

You will understand.

I own a business and yes, banks have a purpose. Unfortunately, today you kind of need to use them because your money will devalue itself even more if you simply "store it underneath your bed." Economics 101 teaches that you should never do that, even in times of a fiscally-insane, constantly-devaluing currency, such as the one we face now.

Banks don't merely hold your savings at the mercy of whether or not they like you; they also serve as methods of investment and loans. Yes, the artificially low interest rates are terrible for businesses with money in the bank, but a 2% return is better than a 0% return under a real 7%-15% (whatever it truly is these days) rate of inflation.

Investing in gold is a great way to counteract this, but it's only worthwhile if you're dealing with a lot of money, and it generally is not considered "convenient" for businesses that don't deal in the brokerage industry. Check out Peter Schiff's company in Darien, CT for a very realistic take on that.

 

[Ozwest]

I own a business and yes, banks have a purpose. Unfortunately, today you kind of need to use them because your money will devalue itself even more if you simply "store it underneath your bed." Economics 101 teaches that you should never do that, even in times of a fiscally-insane, constantly-devaluing currency, such as the one we face now.

Banks don't merely hold your savings at the mercy of whether or not they like you; they also serve as methods of investment and loans. Yes, the artificially low interest rates are terrible for businesses with money in the bank, but a 2% return is better than a 0% return under a real 7%-15% (whatever it truly is these days) rate of inflation.

Investing in gold is a great way to counteract this, but it's only worthwhile if you're dealing with a lot of money, and it generally is not considered "convenient" for businesses that don't deal in the brokerage industry. Check out Peter Schiff's company in Darien, CT for a very realistic take on that.

Absolute crap.

My motto has always been to keep my money stored with my guns. Pay for plant and equipment in cash, and run thirty day accounts with suppliers (ensuring best terms). Any Banking was a necessary evil.

My employees understood my position, and were confident that when downturns occurred, they would still hold a position in my firm, whilst over-debted others fell away.

 

[dealerjim]

2) A bank can work as a mechanism by which those with extra savings (the depositers) can find people who want to take out loans. The bank acts as a middle man overseeing the transaction and letting these people find each other. Of course its not that simple because hardly are the transactions 1v1 but the point is still the same. Thus people who have savings can use a bank to loans out their savings and make some money through interest. Otherwise that money would just get wasted sitting in a checking account or underneath your mattress.

This is merely an assumption on my part but I'm thinking you have never heard of fractional reserve lending. Have a look at this video and you'll find that banks don't need necessarily need your deposits to make loans.

http://video.google.com/videoplay?docid=-9050474362583451279

 

[Ozwest]

This is merely an assumption on my part but I'm thinking you have never heard of fractional reserve lending. Have a look at this video and you'll find that banks don't need necessarily need your deposits to make loans.

http://video.google.com/videoplay?docid=-9050474362583451279

Fractional Reserve lending is for chumps.

Some people have a full common denominator.

Go back to your mortgage lending institution.

 

[Roxi]

i wouldn't trust my money in a bank any more than i would hand it to some guy on the street to hold for me. and my check is spent on bills and necessities every week before i even cash it so its not like i have to worry much but hey...


BUT banks are good for FREE CALENDARS!

 

[Ozwest]

i wouldn't trust my money in a bank any more than i would hand it to some guy on the street to hold for me. and my check is spent on bills and necessities every week before i even cash it so its not like i have to worry much but hey...


BUT banks are good for FREE CALENDARS!

You are on my wave-length.

 

[Truth Warrior]

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." -- Lord Acton

 

[pacelli]

1) They provide you with a place to secure your earnings. Are you going to take your salary and shove it underneath your bed every week? Of course not, you give it to a bank to hold onto it for you.

What difference is it to you what people do with their earnings? What if I trade my craft for gold, silver, and services and don't deal with federal reserve notes at all?

 

[Ozwest]

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." -- Lord Acton

Fuck Lord Acton.

As a Neanderthal...

I have no time for Major Dick heads.

 

[Truth Warrior]

Fuck Lord Acton.

As a Neanderthal...

I have no time for Major Dick heads.

Nor they with or for you.

 

[satchelmcqueen]

Ummm, well sure.

Call me paranoid or ignorant or whatever, but I dont trust the banks, who are notoriously in bed with the Fed and Government, with my wealth.

Say the wrong thing in front of the wrong person and suddenly your life savings will be seized, and you'll be lucky if you ever get any of it back. Or if you own back taxes or if you have fines or penalties levied against you, hell its getting to the point where they will freeze your assets if you are late on your cable bill. Most of America doesn't have much in the way of savings anyway. A couple of thousand dollars maybe. I'd rather spend a couple of hundred dollars on a good safe.

Me too.

 

[Ozwest]

Nor they with or for you.

Where's my broad-sword?

 

[satchelmcqueen]

You are full of shit.

Banks are a mechanism aiding government in the tracking of your hard earned.

If you have ever owned a business.

You will understand.

ive never owned a buisness , but yep one time me and my family was just barely scrapping by, so i bit the pride bullet and had to apply for food stamps. we were told that since we had $200 in our bank account that we couldnt qualify until we spent that first. i understand that to a point, but that was bill money for the next few weeks that we needed to have no matter what.

we stopped using banks after that for savings.

 

[Truth Warrior]

Where's my broad-sword?

I've got it. I thought you Neanderthal guys use sticks and rocks.

 

[Ozwest]

ive never owned a buisness , but yep one time me and my family was just barely scrapping by, so i bit the pride bullet and had to apply for food stamps. we were told that since we had $200 in our bank account that we couldnt qualify until we spent that first. i understand that to a point, but that was bill money for the next few weeks that we needed to have no matter what.

we stopped using banks after that for savings.

Peace.

 

[revolutionman]

I own a business, albeit small, a business never the less, and i have little use for banks. If i had a bigger business maybe there would be some use, but thats in the event of owning a business, as a private citizen who works for some one else, there is really no need for a bank account.