So you're saying the banks don't have any of our money anyway, it's all fiction. But it would be really terrible if that fiction were revealed?
How about this: crash the banks, nationalize them, and license banking rights to new owners who are held to a higher standard of behavior. Current owners get fucked.
Every time this happens it's always the same, we can't let the chips fall because this super complex web of deceit would get dislocated.
Yes, that’s how the banking system works. When you deposit money into a bank account it goes into their “pool” of money. That is where they get the money to fund loans. The way banks make money is by charging interest on the loans.
Under normal circumstances there is always enough money in the “pool” to allow people to withdraw from their own account at any time. Only a certain percentage of people are withdrawing money at one time so they only need to keep a certain percentage of that money in the pool. But they don’t keep enough money in the pool for everyone to withdraw all of their money at the same time because that money is being used to fund mortgages and loans.
If they always kept all of everyone’s money in the pool, they wouldn’t be able to issue loans because they would have no source of money to fund the loans. If we don’t have loans, people would have to buy houses all paid for upfront because there is nowhere to borrow money from. Small businesses would get hurt a lot more than big businesses because small businesses are generally the ones who need to borrow money to expand.
Where the banks fucked up is by shorting massive amounts of silver, meaning they sold something they don’t have. What did they do with the money they received from the short sale? They likely used it to issue more loans so they can make more money on the interest of the loans.
So now what happens if the banks are suddenly caught on the wrong side of a massive short squeeze with billions of dollars leveraged? How do they pay out these massive losses? They certainly don’t have this much money on hand to pay out the losses because it has been loaned out. Do they draw from the pool of money from people’s bank accounts? Do they stop issuing loans? Do they suddenly require people to pay back the money that was loaned to them by the banks? They absolutely cannot risk anyone defaulting on loans. Interest rates will have to be increased dramatically. If the banks don’t have this money, where does it come from?
What if they literally CAN’T buy out of their shorts because they don’t have the money to do so?
That’s why I think there’s really only a few options (that I can think of). Either the government steps and puts a stop on this massive short squeeze, or they bail them out by printing an enormous amount of money and we end up with hyperinflation. Hyperinflation will damage our economy tremendously so I think the only way to fix this is by having the government step in and stop it.
I am by no means supportive of the corrupt practices of our banks and I agree we need we need to hold them to a higher standard. But people need to realize the massive ripple effects that would take place by “crashing the banks”. For better or worse, our entire economic system is dependent on the banks. I’m not defending them, I’m just laying it out the implications is this happens.
I have to disagree with you based on your statement:
"Where the banks fucked up is by shorting massive amounts of silver, meaning they sold something they don’t have."
I disagree because a bank should not be speculating in any market such as stocks, commodities, or futures. The moment they begin doing that they are no longer just a bank. They are simply a casino betting with other people's money.
That's wrong.
The regulation prohibiting that was rolled back to the detriment of the entire world. So, no, I don't agree this is something that shouldn't be done simply because it locks up the person on main street. I believe this needs to be done to get rid of this cancer. 2008 didn't change a damn thing for banks. They rewarded themselves with massive bonuses and continued on as if the 2008 event never occurred.
When a system becomes so corrupt, so degenerate and morally bankrupt that it continues to do the same things it's always done - and which always cause pain to the person on main street - without a care in the world because it always gets away with it? Time to tear it down and imprison the people involved.
I've seen financial advice going back to the early 2000's advising people to invest in precious metals because of what happened with the Dot Com bubble. I've read advice going back decades to keep enough liquid cash available to pay for a few months of living expenses. 1987, 1999, 2008. Heck, go back to 1929. The behavior the financial institutions engage in is not new behavior. They've just never been held truly accountable - and never had to worry about the laws preventing such actions from staying on the books for very long.
I agree with you on that. The banks shouldn’t be involved in any speculation in stocks and commodities. I more so meant they especially shouldn’t be shorting commodities and stocks since the potential losses are infinite. But also realize they are “speculating” when they issue loans to businesses. They are betting the company won’t go out of business and will be able to pay back the full amount of the loan + interest. So the banks will always be taking on some kind of risk by lending.
I think this time will be different in terms of holding them accountable. If Q and Trump’s plan comes to fruition I expect they will make sure something like this never happens again.
Ah, but being in the Loan business is not that same as speculating in stocks/commodities/futures. With loans, a banker "should" take into account the borrower's ability to not just repay the loan, but also consider what the borrower brings in as collateral. Which is completely different than using the savings of other people in order to speculate in uncertain markets in order to make money, using someone else's money, and as the bank I pocket all profit.
That's not banking, that's gambling. Providing loans as a bank is nothing like speculating in the markets with the money of other people because at least with loans, the ability of the borrower to repay and offer up collateral is something to consider if that loan should enter default.
I get your sentiment. I completely understand it. Any system crash happening now will hurt the main street person far, far worse than it would any banker or politician. But that's the crux of the issue. How will this type of behavior end, if the blue collar worker doesn't completely understand how much he/she is being screwed over by bankers gambling with funds that don't belong to the banker?
For decades people have been trying to educate and disseminate information about how the banking industry actually operates. Up until this recent /r/wallstreetbets focus on the silver industry, people would have thought you crazy if you said you bought an ASE and tried to explain the difference between currency and money.
What big banks are doing with Wall Street should be, and at one time was, criminal. It's not anymore because the right people lined the pockets of the other right people. If the person on main street doesn't wake up and stop this type of action, then they will keep getting screwed by those same banks and politicians. Any action now to delay it is simply kicking a hand grenade further down the road and praying it doesn't explode.
having the government step in and stop people from purchasing silver is totalitarian enslavement. Don’t be such a braindead moron that you think that we must remain slaves to the usurers because it would cOlLaPsE tHe SyStEm
Calm down my man. I think you’re missing the point of what I’m saying.
I’m not condoning or approving the government stepping in to stop people from buying silver. I completely agree with you, it is absolutely a move from a totalitarian government - a government being run by the same corrupt politicians we are trying to get rid of. If they do this, think of all the support the Biden administration will lose (if they even have any now). You do realize how many people would be instantly red-pilled from something like this happening, right?
At a certain price point, the banks literally won’t be able to cover their short positions because they won’t have the money to do so. That also means they don’t have money to issue loans. No one can borrow money to buy a house. No businesses can borrow money to expand. Do they also stop credit card purchases? They can’t risk people defaulting and not being able to pay it off. What happens if they start limiting the amount of money you’re able to withdraw from your bank account because they simply don’t have it?
Biden’s administration will be forced to step in and do something.
Our money is in the hands of these banks. Yes, they are the ones who fucked up, but if they lose all of our money then who is really paying the price for their mistakes?
don’t you get it? our money is only in the hands of these banks if we don’t buy precious metals. Buying precious metals is literally taking away their power and yes there is pain when exposing decades of fraud but it MUST BE DONE.
So you're saying the banks don't have any of our money anyway, it's all fiction. But it would be really terrible if that fiction were revealed?
How about this: crash the banks, nationalize them, and license banking rights to new owners who are held to a higher standard of behavior. Current owners get fucked.
Every time this happens it's always the same, we can't let the chips fall because this super complex web of deceit would get dislocated.
Yes, that’s how the banking system works. When you deposit money into a bank account it goes into their “pool” of money. That is where they get the money to fund loans. The way banks make money is by charging interest on the loans.
Under normal circumstances there is always enough money in the “pool” to allow people to withdraw from their own account at any time. Only a certain percentage of people are withdrawing money at one time so they only need to keep a certain percentage of that money in the pool. But they don’t keep enough money in the pool for everyone to withdraw all of their money at the same time because that money is being used to fund mortgages and loans.
If they always kept all of everyone’s money in the pool, they wouldn’t be able to issue loans because they would have no source of money to fund the loans. If we don’t have loans, people would have to buy houses all paid for upfront because there is nowhere to borrow money from. Small businesses would get hurt a lot more than big businesses because small businesses are generally the ones who need to borrow money to expand.
Where the banks fucked up is by shorting massive amounts of silver, meaning they sold something they don’t have. What did they do with the money they received from the short sale? They likely used it to issue more loans so they can make more money on the interest of the loans.
So now what happens if the banks are suddenly caught on the wrong side of a massive short squeeze with billions of dollars leveraged? How do they pay out these massive losses? They certainly don’t have this much money on hand to pay out the losses because it has been loaned out. Do they draw from the pool of money from people’s bank accounts? Do they stop issuing loans? Do they suddenly require people to pay back the money that was loaned to them by the banks? They absolutely cannot risk anyone defaulting on loans. Interest rates will have to be increased dramatically. If the banks don’t have this money, where does it come from?
What if they literally CAN’T buy out of their shorts because they don’t have the money to do so?
That’s why I think there’s really only a few options (that I can think of). Either the government steps and puts a stop on this massive short squeeze, or they bail them out by printing an enormous amount of money and we end up with hyperinflation. Hyperinflation will damage our economy tremendously so I think the only way to fix this is by having the government step in and stop it.
I am by no means supportive of the corrupt practices of our banks and I agree we need we need to hold them to a higher standard. But people need to realize the massive ripple effects that would take place by “crashing the banks”. For better or worse, our entire economic system is dependent on the banks. I’m not defending them, I’m just laying it out the implications is this happens.
I have to disagree with you based on your statement:
"Where the banks fucked up is by shorting massive amounts of silver, meaning they sold something they don’t have."
I disagree because a bank should not be speculating in any market such as stocks, commodities, or futures. The moment they begin doing that they are no longer just a bank. They are simply a casino betting with other people's money.
That's wrong.
The regulation prohibiting that was rolled back to the detriment of the entire world. So, no, I don't agree this is something that shouldn't be done simply because it locks up the person on main street. I believe this needs to be done to get rid of this cancer. 2008 didn't change a damn thing for banks. They rewarded themselves with massive bonuses and continued on as if the 2008 event never occurred.
When a system becomes so corrupt, so degenerate and morally bankrupt that it continues to do the same things it's always done - and which always cause pain to the person on main street - without a care in the world because it always gets away with it? Time to tear it down and imprison the people involved.
I've seen financial advice going back to the early 2000's advising people to invest in precious metals because of what happened with the Dot Com bubble. I've read advice going back decades to keep enough liquid cash available to pay for a few months of living expenses. 1987, 1999, 2008. Heck, go back to 1929. The behavior the financial institutions engage in is not new behavior. They've just never been held truly accountable - and never had to worry about the laws preventing such actions from staying on the books for very long.
I agree with you on that. The banks shouldn’t be involved in any speculation in stocks and commodities. I more so meant they especially shouldn’t be shorting commodities and stocks since the potential losses are infinite. But also realize they are “speculating” when they issue loans to businesses. They are betting the company won’t go out of business and will be able to pay back the full amount of the loan + interest. So the banks will always be taking on some kind of risk by lending.
I think this time will be different in terms of holding them accountable. If Q and Trump’s plan comes to fruition I expect they will make sure something like this never happens again.
Ah, but being in the Loan business is not that same as speculating in stocks/commodities/futures. With loans, a banker "should" take into account the borrower's ability to not just repay the loan, but also consider what the borrower brings in as collateral. Which is completely different than using the savings of other people in order to speculate in uncertain markets in order to make money, using someone else's money, and as the bank I pocket all profit.
That's not banking, that's gambling. Providing loans as a bank is nothing like speculating in the markets with the money of other people because at least with loans, the ability of the borrower to repay and offer up collateral is something to consider if that loan should enter default.
I get your sentiment. I completely understand it. Any system crash happening now will hurt the main street person far, far worse than it would any banker or politician. But that's the crux of the issue. How will this type of behavior end, if the blue collar worker doesn't completely understand how much he/she is being screwed over by bankers gambling with funds that don't belong to the banker?
For decades people have been trying to educate and disseminate information about how the banking industry actually operates. Up until this recent /r/wallstreetbets focus on the silver industry, people would have thought you crazy if you said you bought an ASE and tried to explain the difference between currency and money.
What big banks are doing with Wall Street should be, and at one time was, criminal. It's not anymore because the right people lined the pockets of the other right people. If the person on main street doesn't wake up and stop this type of action, then they will keep getting screwed by those same banks and politicians. Any action now to delay it is simply kicking a hand grenade further down the road and praying it doesn't explode.
having the government step in and stop people from purchasing silver is totalitarian enslavement. Don’t be such a braindead moron that you think that we must remain slaves to the usurers because it would cOlLaPsE tHe SyStEm
Calm down my man. I think you’re missing the point of what I’m saying.
I’m not condoning or approving the government stepping in to stop people from buying silver. I completely agree with you, it is absolutely a move from a totalitarian government - a government being run by the same corrupt politicians we are trying to get rid of. If they do this, think of all the support the Biden administration will lose (if they even have any now). You do realize how many people would be instantly red-pilled from something like this happening, right?
At a certain price point, the banks literally won’t be able to cover their short positions because they won’t have the money to do so. That also means they don’t have money to issue loans. No one can borrow money to buy a house. No businesses can borrow money to expand. Do they also stop credit card purchases? They can’t risk people defaulting and not being able to pay it off. What happens if they start limiting the amount of money you’re able to withdraw from your bank account because they simply don’t have it?
Biden’s administration will be forced to step in and do something.
Our money is in the hands of these banks. Yes, they are the ones who fucked up, but if they lose all of our money then who is really paying the price for their mistakes?
don’t you get it? our money is only in the hands of these banks if we don’t buy precious metals. Buying precious metals is literally taking away their power and yes there is pain when exposing decades of fraud but it MUST BE DONE.