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man it sucks. I'm one of those savers and have been waiting for my turn to be able to buy a home for last 5 years. I was hoping the house prices would come down
by frequentnapper 6y ago
man it sucks. I'm one of those savers and have been waiting for my turn to be able to buy a home for last 5 years. I was hoping the house prices would come down to affordable level, but they are on fire again! What's the point of being responsible when spending and borrowing like there's no tomorrow will guarantee you help from govt?
- deleted 6y ago[deleted]
- didibus 6y agoI'm a saver myself for the most part, but the economy is not designed around saving. Its designed around moving "pending" money towards growth areas. For example, a bank only agrees to hold onto your money, because it will actually spend it for you. Whenever you "saved" money, unless it was in your own coffin of gold, you actually just gave it to someone else to spend it with the promise that whenever you want it back they'll have it. That said, if the market crashes, they won't have it. Because the bank's plan to "have" your money when you ask for it is actually to give you someone's else's. Cause your money has already been spent, either loaned to someone who wanted to buy a house, or start a business, etc. That means if all those loans defaults, the bank actually won't "have" your money, it'll have lost it. This is at a high level (from my understanding), why the government always bails out banks and bank related markets like home loans. If the bank go broke, everyone's money is gone.
- qqqwerty 6y agoAt least in the U.S., savings and checking accounts are FDIC insured. So savers would likely be made whole in the event of a bank run.
- frequentnapper 6y agobut only up to 250k
- votepaunchy 6y ago250K per person per bank per account type.
- WrtCdEvrydy 6y agoAlthough it could take years to get a payout. FDIC is basically just saying "we'll pay it out of taxes'. The whole thing is a shell game.
- imtringued 6y agoYeah, banks are basically like video game servers. Once they shut down the servers all the stuff on the servers is no longer accessible. However, you missed a few things. As long as people don't withdraw cash, the money will always be stuck in the banking system. When you spend borrowed money it just lands in someone else's bank account. Banks basically have a license to print money. As long as a bank doesn't go out of business it will pay it's loans back eventually.
- raxxorrax 6y agoIn that case the economy fails its basic function on the back of young and old people in the interest of risk takers. Although you cannot call it risk anymore since government will save you in times of need.
- didibus 6y agoI'm not saying it's good or bad. I think the question is more what alternate models could we have? And what would their corresponding pros/cons be?