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Yeah and a supermarket has to pay electricity and fridge repairs, but you don't see line items for these on your grocery receipt. Banks are massively profitable

Yeah and a supermarket has to pay electricity and fridge repairs, but you don't see line items for these on your grocery receipt. Banks are massively profitable businesses and we still accept them externalising more and more costs to consumers over time.

littlestymaar 4y ago
> Yeah and a supermarket has to pay electricity and fridge repairs, but you don't see line items for these on your grocery receipt. That doesn't mean the supermarket doesn't charge you for it. Supermarket too are massively profitable businesses.
- throw0101c 4y ago
  > Supermarket too are massively profitable businesses. By "massively" do you mean margins of 2-4%?
- NotYourLawyer 4y ago
  I’m not lending money to the supermarket and paying for the privilege of handing it over to them.
  - littlestymaar 4y ago
    First of all, you do not “lend money” money to banks either, banks created most of this money out of thin air in the first place[1]. Here we're talking about asking banks to convert your hard-to-manage-at-scale-central-bank-paper-money to money-on-a-bank-account-that's-more-convenient-to-handle (that's why you do it in the first place). In both case you're the sole owner of the money as, contrary to popular beliefs, banks do not lend your bank account's money to others. Then, regarding supermarkets you'd be surprised as their business model isn't what you think it is. Since they pay their suppliers quite some time after being shipped (60 days in my country, it varies with the country but AFAIK there's always a delay) while they sell their stock much more quickly, which means the majority of what you buy from them, they haven't actually paid it, but borrowed with an interest rate of zero. When interest rates are high, they can make significant revenues from managing this cash flow alone. [1]: https://www.bankofengland.co.uk/knowledgebank/how-is-money-created https://www.bankofengland.co.uk/knowledgebank/how-is-money-c...
    - tjrDL6MjB2Zwwa 4y ago
      You are absolutely lending money to the bank when you deposit it, and they are absolutely investing it and making money off of it. Why do you think savings accounts have limits on it but you get interest on it? Because it's more stable and more reliable for them.

littlestymaar 4y ago

> Yeah and a supermarket has to pay electricity and fridge repairs, but you don't see line items for these on your grocery receipt. That doesn't mean the supermarket doesn't charge you for it. Supermarket too are massively profitable businesses.

throw0101c 4y ago
> Supermarket too are massively profitable businesses. By "massively" do you mean margins of 2-4%?
NotYourLawyer 4y ago
I’m not lending money to the supermarket and paying for the privilege of handing it over to them.
- littlestymaar 4y ago
  First of all, you do not “lend money” money to banks either, banks created most of this money out of thin air in the first place[1]. Here we're talking about asking banks to convert your hard-to-manage-at-scale-central-bank-paper-money to money-on-a-bank-account-that's-more-convenient-to-handle (that's why you do it in the first place). In both case you're the sole owner of the money as, contrary to popular beliefs, banks do not lend your bank account's money to others. Then, regarding supermarkets you'd be surprised as their business model isn't what you think it is. Since they pay their suppliers quite some time after being shipped (60 days in my country, it varies with the country but AFAIK there's always a delay) while they sell their stock much more quickly, which means the majority of what you buy from them, they haven't actually paid it, but borrowed with an interest rate of zero. When interest rates are high, they can make significant revenues from managing this cash flow alone. [1]: https://www.bankofengland.co.uk/knowledgebank/how-is-money-created https://www.bankofengland.co.uk/knowledgebank/how-is-money-c...
  - tjrDL6MjB2Zwwa 4y ago
    You are absolutely lending money to the bank when you deposit it, and they are absolutely investing it and making money off of it. Why do you think savings accounts have limits on it but you get interest on it? Because it's more stable and more reliable for them.