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chevin

Banks Aren’t The Only Culprits.

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By ‘demanding’ interest on the deposit you ‘loan’ to your bank you ‘buy’ into the very monetary mechanism that many seem to deride the banks for. How else can they make sufficient profit to pay you your interest if some form of fractional reserve banking didn’t exist? I suppose we could demand the government set up a shared ‘under the mattress’ savings mechanism and return to the have’s loaning to the have not’s, leading to the have’s accumulating ever more.

The present system implies we all have an opportunity to dabble. In reality its let the have’s accumulate even more, but under the pretence that at least we can all have a go. That the statistical odds for a successful dabble are not far short of playing the lottery, is this pretence worth it? The bigger corporations get ever bigger, leading to a smaller pooling of share holders, leading fewer and fewer, but far wealthy individuals. At what point is the size of a corporation capped in an effort for social cohesion?

Unless we move to some social token type system, with the have’s being ‘de-haved’ a little before the button is pressed. Or a move back to some sort of gold standard; the best we can hope for is a return to a REGULATED system, where a bank is permitted to make a modest return, must keep all loans on it’s own books to demonstrate a civil interest (a bit like the good old fashioned Building Societies perhaps) with its executive’s only getting a reasonable salary.

What we can’t do is whinge about the fractional reserve system unless we are willing to ‘demand’ a little less interest, whilst insisting on a little more price control. Perhaps even a little dose of communism!

Once upon a time banks didn’t offer mortgages. What’s the chances of banks moving away from mortgages once more? Has it already ‘voluntarily’ started? After all; why wait until regulation imposes it?

anybody any bright ideas?

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By ‘demanding’ interest on the deposit you ‘loan’ to your bank you ‘buy’ into the very monetary mechanism that many seem to deride the banks for. How else can they make sufficient profit to pay you your interest if some form of fractional reserve banking didn’t exist? I suppose we could demand the government set up a shared ‘under the mattress’ savings mechanism and return to the have’s loaning to the have not’s, leading to the have’s accumulating ever more.

The present system implies we all have an opportunity to dabble. In reality its let the have’s accumulate even more, but under the pretence that at least we can all have a go. That the statistical odds for a successful dabble are not far short of playing the lottery, is this pretence worth it? The bigger corporations get ever bigger, leading to a smaller pooling of share holders, leading fewer and fewer, but far wealthy individuals. At what point is the size of a corporation capped in an effort for social cohesion?

Unless we move to some social token type system, with the have’s being ‘de-haved’ a little before the button is pressed. Or a move back to some sort of gold standard; the best we can hope for is a return to a REGULATED system, where a bank is permitted to make a modest return, must keep all loans on it’s own books to demonstrate a civil interest (a bit like the good old fashioned Building Societies perhaps) with its executive’s only getting a reasonable salary.

What we can’t do is whinge about the fractional reserve system unless we are willing to ‘demand’ a little less interest, whilst insisting on a little more price control. Perhaps even a little dose of communism!

Once upon a time banks didn’t offer mortgages. What’s the chances of banks moving away from mortgages once more? Has it already ‘voluntarily’ started? After all; why wait until regulation imposes it?

anybody any bright ideas?

Sure.

Stop making people use "legal tender"

End all regulation.

Cease using violence to interfere with economic affairs.

Disband the government forever.

SHould just about do it.

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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