Banking explained in two minutes

[Pauls' Revere]

[TheTexan]

We don't even have FRB anymore. At least with FRB there was some small fraction of actual money you were required to have as backing for your loans.

These days the banks loan out as much as they want, and then they just borrow their required reserve amount from the Fed. Which entirely defeats the purpose. Especially when interest rates are basically 0

[TheTexan]

[Pauls' Revere]

We don't even have FRB anymore. At least with FRB there was some small fraction of actual money you were required to have as backing for your loans.

These days the banks loan out as much as they want, and then they just borrow their required reserve amount from the Fed. Which entirely defeats the purpose. Especially when interest rates are basically 0

Bet we'll all have personal accounts set up directly with the FED so we can use the digital dollar.

[Madison320]

I didn't watch the video but I wanted to point out that there's nothing wrong with free market banks, in fact they are a vital part of increasing our standard of living.

It's when the government takes over the banking system that it becomes a problem.

I'm just mentioning this in case it's an "all banks are bad" video.

[TheTexan]

I didn't watch the video but I wanted to point out that there's nothing wrong with free market banks, in fact they are a vital part of increasing our standard of living.

It's when the government takes over the banking system that it becomes a problem.

I'm just mentioning this in case it's an "all banks are bad" video.

Banks are good but bankers are bad. There's a reason why bankers in any movie are always portrayed as insidious little creatures.

[Pauls' Revere]

I didn't watch the video but I wanted to point out that there's nothing wrong with free market banks, in fact they are a vital part of increasing our standard of living.

It's when the government takes over the banking system that it becomes a problem.

I'm just mentioning this in case it's an "all banks are bad" video.

Its central banks (government run) that are mentioned.

[ClaytonB]

I assume everyone on RPF has already watched this, but dropping here for reference:

[Madison320]

Banks are good but bankers are bad. There's a reason why bankers in any movie are always portrayed as insidious little creatures.

In the movies every banker who forecloses on someone is the evil villain.

How dumb do you have to be to think the banks should just loan out money and have no recourse if they don't get paid?

[TheTexan]

In the movies every banker who forecloses on someone is the evil villain.

How dumb do you have to be to think the banks should just loan out money and have no recourse if they don't get paid?

Bankers shouldn't loan money they should just give out free money because they have so much already.

[Pauls' Revere]

Bankers shouldn't loan money they should just give out free money because they have so much already.

Ben? Is that you?



I’d throw dollars out of helicopters if I had to, to stimulate the economy.
— Ben Bernanke

[TheTexan]

Ben? Is that you?



I’d throw dollars out of helicopters if I had to, to stimulate the economy.
— Ben Bernanke

Boooo!! Banker! Booooooooo!

[ClaytonB]

[larryklein]

I didn't watch the video but I wanted to point out that there's nothing wrong with free market banks, in fact they are a vital part of increasing our standard of living.

It's when the government takes over the banking system that it becomes a problem.

I'm just mentioning this in case it's an "all banks are bad" video.

Yes you are right, he said this in this video
In this two minutes video, the debater ‘Bloom’ emphasises that all banks are broke and blames it on a system called fractional reserve banking which means that the banks can loan out money on small deposits, the money that they don’t have. He refers to this banking system as a scandal. According to him most of the problems arise in politics and central banks which is a part of the political system where they illegally defraud the artificial printing of money. He points out that it’s central banks that manipulate interest rates yet it’s the retail banks that we blame. Lastly he talks about deposit guarantees which means when the banks go broke, the taxpayer picks up its tab. He ended his debate by stating that until we start sending politicians and central bankers to prison for this outrage, it will continue.