4 ms·

This is very unlogical: Gov creates money not the banks. They do have operational costs. And it is not one person who needs to accept checks, every branch has

by Femtio 5y ago

This is very unlogical: Gov creates money not the banks. They do have operational costs. And it is not one person who needs to accept checks, every branch has to support this. I have not been to a bank for the last 10 years. They are obsolete. And those buildings are expensive and they have to be able to compete with online banks. It's not even an option for them to just keep those buildings.

kwhitefoot 5y ago
Of course banks create money. You don't think that they hold enough money to pay all their creditors at once do you? Never heard of fractional reserve banking? See https://www.investopedia.com/terms/f/fractionalreservebanking.asp https://www.investopedia.com/terms/f/fractionalreservebankin...
- Femtio 5y ago
GekkePrutser 5y ago
As I understand it, the new money that's 'created'(not even minted as paper money is pretty niche now) by the government is given to the banks to invest. PS I was just at my bank and I'm not even super old :)
- Femtio 5y ago
  But for what?
  - GekkePrutser 5y ago
    What do you mean for what? Why I was at the bank? I had to cancel a credit card I never used, and had to show my latest ID.. Here in Europe banks are supposed to validate ID regularly now which is a real pain in the **. I don't get why either, it's not like I change identity very often :) It's just more distrust from the government I think. No I didn't go there to withdraw money or to pay bills. Though it can still be done. In fact for some government transactions, like getting a new ID, it has to be done. You have to go to the bank with a government form, pay your 20 euros into the government account, and the bank stamps the form as proof that you did it. Then you take that to the police and they issue a new ID. This is also in Spain by the way (like the article). Yeah I hate this process too. But I like that old people can still do things the way they understand.
    - Femtio 5y ago
      I never canceled a credit card like this. They just want me to send it back. Very weird but unlucky you I guess :)

by Femtio 5y ago

kwhitefoot 5y ago

Of course banks create money. You don't think that they hold enough money to pay all their creditors at once do you? Never heard of fractional reserve banking? See https://www.investopedia.com/terms/f/fractionalreservebanking.asp https://www.investopedia.com/terms/f/fractionalreservebankin...

Femtio 5y ago

GekkePrutser 5y ago

As I understand it, the new money that's 'created'(not even minted as paper money is pretty niche now) by the government is given to the banks to invest. PS I was just at my bank and I'm not even super old :)

Femtio 5y ago
But for what?
- GekkePrutser 5y ago
  What do you mean for what? Why I was at the bank? I had to cancel a credit card I never used, and had to show my latest ID.. Here in Europe banks are supposed to validate ID regularly now which is a real pain in the **. I don't get why either, it's not like I change identity very often :) It's just more distrust from the government I think. No I didn't go there to withdraw money or to pay bills. Though it can still be done. In fact for some government transactions, like getting a new ID, it has to be done. You have to go to the bank with a government form, pay your 20 euros into the government account, and the bank stamps the form as proof that you did it. Then you take that to the police and they issue a new ID. This is also in Spain by the way (like the article). Yeah I hate this process too. But I like that old people can still do things the way they understand.
  - Femtio 5y ago
    I never canceled a credit card like this. They just want me to send it back. Very weird but unlucky you I guess :)