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Banks are forced to have some capabilities in risk management and controls because they are regulated and supervised to that effect. You can buy short-dated tr
by RandomLensman 3y ago
Banks are forced to have some capabilities in risk management and controls because they are regulated and supervised to that effect.
You can buy short-dated treasury bills if you want direct tax payers support for your money, for example. Giving money to a bank is lending the money to the bank with your permission, but there are other debtors available.
- dheera 3y ago> Giving money to a bank is lending the money to the bank with your permission It shouldn't be that way. Banks should be forced to either (a) never lend your money out, or (b) offer an interest rate higher than the Treasury plus state taxes -- that's the only reason I'd ever want to lend to them.
- RandomLensman 3y agoWhy? That's not what a bank is... What would the bank do then anyway? Store cash?
- dheera 3y agoYeah why not? They can also lend my money out if they want, and give me 8% interest, if so I'm interested and I would agree. Any less than 6.5% and it's a hard no-consent-to-lending-my-money because the Treasury gives me more.
- JumpCrisscross 3y ago> They can also lend my money out if they want, and give me 8% interest, if so I'm interested and I would agree But you're already agreeing at prevailing rates! You have other options, and you're not taking them. Why would they pay you more for shits and giggles? > Any less than 6.5% and it's a hard no-consent-to-lending-my-money because the Treasury gives me more. So buy Treasuries!
- dheera 3y ago> You have other options, and you're not taking them. I am taking them! > So buy Treasuries! I do! But everyone seems to fall for the same bank(man-fried) trap.
- RandomLensman 3y agoSo why are you complaining? There is no trap anywhere.
- deleted 3y ago[deleted]
- wolverine876 3y agoOther than shutting down the economy by making all those assets unproductive, how would bank earn money? Use a custodian account. Put your money in a safe deposit box. Nobody is forcing you to use a standard bank account.