

why me
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Everything posted by why me
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I like this guy too. He's from the same 'depression coming' community http://uk.youtube.com/watch?v=A1mA24yPjaY and another american pyscho http://uk.youtube.com/watch?v=wtQ32bH43dU
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Goes off.
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I Blame Computers For This Crisis
why me replied to interestrateripoff's topic in House prices and the economy
"Have you tried turning it on and off again?" -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
They fill in a period return. Form XXX or something. -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
My understaning is this: The bank creates a loan-account because of the loan-agreement. This is your debt - the bank asset (credit extended to you / your liability). The account belongs to the bank and is there for customer use to make payments (which makes sense because sometimes they ask you to provide a customer reference because they need to identify who paid what - if it used by many others). It is the interface between the customer and the bank for making payments and is not measured by M4 because it is an MFI account - but designated for customer use. The bank then creates a deposit (thin air) into your currenct account. This you extending credit to the bank - the bank liability (a debt owed to you / your asset). This account is measured by M4. M4 is a measure of banking liabilities to retail customer (etc etc....) -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
I think creates deposits out of thin air is a better term. -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
Great. That makes sense. The loan account is not actually the customers account. Its just designated for customer use to make payments. It actually the belongs to the bank. My guess is you would have to provide a reference in your payments so the bank can identify which customer is making the payment (if used by more than one customer)? If its a bank account belonging to the bank - is it non-retail and it doesn't constitute money supply because M4 doesnt measure bank accounts held by MFIs at commercial banks....the money supply is increased by the deposit made into your personal current account ? (I agree with no money required - its thin air) -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
Does a borrower draw money from this loan account - or as I think - is the money actually deposited into his normal day-to-day current account? The last loan I got was deposited into my existing bank account (which already had a balance). -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
No - your forgetting electronic cash. Banks maintain their own bank accounts at the central bank to perform interbank payments between banks - much like customers have accounts at commercial banks. These accounts are different in nature however in that they contain electronic cash - not thin air money. So if a bank performs a CHAPS payment say to another bank - it will involve moving cash from one banks bank-account to another banks bank-account. Cash transfer. The receiving bank will then create thin-air money in the deposit account of the receiving customer. The sending bank will destroy the thin-air money in the account of the customer sending. -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
(yes the point of agreement I stopped at) It is a negative liability I think - like an overdraft. A bank account is always a liability to a bank. It has a specific place on under liabilites on the balance sheet. -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
Yes I agree with this (to a point) But where is the broad money that the loan event created deposited and made accessible? You dont draw it from this loan account do you ? You get the money paid into your normal bank account right? -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
No, nothing in creating it. But it the money created from that loan is asked to leave that bank - the bank has to stump up some electronic cash. They have to acquire that like everyone else. -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
No - you have the banks liability - your asset. A bank account is a banks liability - or an asset to you. -
Bank Credit Is A Bank Loss Issued From Thin Air
why me replied to aliveandkicking's topic in House prices and the economy
When you get a loan - broad money is deposited into your bank account (where you might have some savings already). This is the bank liability. The asset is the loan-agreement. This stays on the bank ledger at all times. You transfer money from your bank account to your account at another bank.....the liability is dropped in the ledger - a cash asset is transferred via a payment system CHAPS say (operated in conjuction with the central bank) to the destination bank (the banks bank-account). That bank then creates a new liability in its ledger - an increase in your bank deposit account. You have a balance to draw against there.