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And how are credit-worthy people supposed to take out loans going forward for basic things like mortgages and credit cards, when there aren't enough bank deposi
by lr4444lr 3y ago
And how are credit-worthy people supposed to take out loans going forward for basic things like mortgages and credit cards, when there aren't enough bank deposits left to allow said banks to make loans? They're just supposed to wait until enough entrepreneurial financiers set up these institutions?
- 15457345234 3y agoThe problem is too many loans. Loans make it too easy to do things so there's always more pressure to lend. Eventually you get to a stage where loans are secured with loans (today's issue) because of greed and it becomes impossible to ever call in loans because it causes cascading failure. When the problem is too many loans 'how do you still let people get loans' is not the right question to be asking.
- salawat 3y agohttps://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm Reserve rates have been 0% since 2020. All Deposit taking institutions with a loan department have carte blanche to print money. The model you're operating under doesn't actually map to how things are now.