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To make the kind of profit they make today, they'd have to charge you the interest they charge on loans today. My mortgage is 2.35%. Are you willing to watch yo
by bediger4000 4y ago
To make the kind of profit they make today, they'd have to charge you the interest they charge on loans today. My mortgage is 2.35%. Are you willing to watch your money disappear at that rate? I don't know that I am, but I'd never considered it before.
- innethread 4y agoBut considering that a lot of costs could be removed by cutting out the lending aspect of the bank business, wouldn’t this % become significantly lower? I imagine a good chunk of a bank’s budget is spent on loan management, risk assessment, marketing, etc.
- gus_massa 4y agoYou should also add the cost to pay more to the guys in the doors with the guns. A usual bank has only some cash for the day, and a lot of paperwork that is important for the bank but worthless for everyone else. But a 100% reserve bank must store all the money like Scrooge McDuck so it will be a juicy targets for thieves and you must add much more security guards, something like Fort Knox.