choose your own bank reserve percentage

[slothman]

This is also posted to Slashdot as "slothman32"

I just came up with a good idea.
It's a bank, or maybe credit union, that has the client determine their own reserves percentage.
One person could say 10% while you could say 100%.
If you both put in $1000 then it would have to have $1100 in in reserves.

Would this bank/CU be a good idea to remedy bank runs and insolvceny(sp)?

[noxagol]

This is also posted to Slashdot as "slothman32"

I just came up with a good idea.
It's a bank, or maybe credit union, that has the client determine their own reserves percentage.
One person could say 10% while you could say 100%.
If you both put in $1000 then it would have to have $1100 in in reserves.

Would this bank/CU be a good idea to remedy bank runs and insolvceny(sp)?

The best way to end bank run/insolvency is to let people only get the amount actually saved at the bank as reserves. If person with 10% reserve amount goes to get their mney, they can only get 10% of it, not all of it.

The problem lies in the bank lending 90% of it out but saying that the person can still get 100% of it out. Its $#@!ing fraud.

[slothman]

How can't they withdraw it?
It always has at least $1000 for the 100%er to withdraw everything.
It just won't lend enough to go below $1K

[noxagol]

How can't they withdraw it?
It always has at least $1000 for the 100%er to withdraw everything.
It just won't lend enough to go below $1K

Right, what I'm saying, is right now its 10% but you can act like you can get it all.

[TheEvilDetector]

Right, what I'm saying, is right now its 10% but you can act like you can get it all.

If there is a run Banks will just borrow from the Fed so they can pay you out and hope you will deposit it again as far as I understand.

LOL.

[noxagol]

If there is a run Banks will just borrow from the Fed so they can pay you out and hope you will deposit it again as far as I understand.

LOL.

Yup. It's a vast ponsi scheme.

[TheEvilDetector]

The best way to end bank run/insolvency is to let people only get the amount actually saved at the bank as reserves. If person with 10% reserve amount goes to get their mney, they can only get 10% of it, not all of it.

The problem lies in the bank lending 90% of it out but saying that the person can still get 100% of it out. Its $#@!ing fraud.

But it's legal fraud.

Tax is legal theft.

Legal is good, no?