Virtual money?

dopester

mewbie wrote: »

Thanks PN. Although I have pretended in the past to understand this, I really cannot be @rsed to look at links / videos / read pompous crap from self called 'experts' on this subject. But I found your explanation interesting and informative. And mercifully short on technical terms and. er. fairly short.

Yes, PasturesNew explanation was good. However if you don't understand something, and are not prepared to take the time to read easy-to-understand encyclopaedia article or other links which explain the issues, don't come crying when your world gets turned upside down and you weren't expecting it, with no contingency plan in place.

About as stupid as putting all your money in an Icelandic bank without examining the risks and then panicking when it all goes wrong. Let the sheeple who don't check what experts say get all they deserve imo.

mewbie_2

dopester wrote: »

However if you don't understand something, and are not prepared to take the time to read easy-to-understand encyclopaedia article or other links which explain the issues, don't come crying when your world gets turned upside down and you weren't expecting it, with no contingency plan in place.

I'm not too sure how to take this, so I'll take offence at it to be on the safe side. There are some things in life I find so crushingly boring, and of no immediate consequence to me, that I ignore them. I place fractional reserve banking in that category.

However, as a reasonably successful and currently employed person - I don't expect to need to come running to a bunch of MSE loonies (this is meant affectionately) because I have missed the finer points of this and some other topics.

bo_drinker

I may have skirted around this thread until I saw P N's explanation and yes it was aimed at dummies (inc me) but very good all the same. I can now also see why I have never nor never will have a credit card. Same reason I never bet in a bookies, a different type of dummy I think.

dopester

mewbie wrote: »

I'm not too sure how to take this, so I'll take offence at it to be on the safe side. There are some things in life I find so crushingly boring, and of no immediate consequence to me, that I ignore them. I place fractional reserve banking in that category.

You might find it boring and of no consequence.

Others here might wish to have a clear understanding of how the fractional reserve system works. They may have found them of incredible significance, had not the British Government decided to protect the savings of Northern Rock depositors (especially those with more than £35K at the time), or savers with Icelandic banks.

They may yet come to regret not educating themselves on the workings if the British Government doesn't step up to protect weaker financial institutions in the future, or delays making deposit protection compensation. "Ohh... but I didn't know."

mewbie wrote: »

Although I have pretended in the past to understand this, I really cannot be @rsed to look at links / videos / read pompous crap from self called 'experts' on this subject.

Sorry Mewbie but with the financial world under incredible pressures, your statement was one of the most stupidest things I've ever read on MSE. Knowledge is power and protection.

I assume you've got liquid wealth in banks and building societies. The savings you have put away in return for your time, energy, creativity, and application.

Yet you glory in not checking a link explaining how the system works because of your disgust of "pompous self-called experts." Really clever Mewbie.

mewbie wrote: »

However, as a reasonably successful and currently employed person - I don't expect to need to come running to a bunch of MSE loonies (this is meant affectionately) because I have missed the finer points of this and some other topics.

I think your attitude is more of clear backhanded-slap on what you believe the knowledge levels of this forum to be more than anything. Loonies who mostly have been bang-on correct about the house price crash where Fionuala and all the other experts crumbled with shock after shock every month.

drbeat

penguine wrote: »

Which is why the government had to step in to reassure us that they wouldn't let any banks go under and that all savers' deposits were protected.

Which is still a theory as one and many others wonder if the govt could cover it all in practice...the sheeple swallowed it just like they swallowed "things can only get better"!

treliac

!!!!!!? wrote: »

..... until the system went into reverse when the US sub-prime market imploded. Now they are facing massive leveraged losses.

In a nutshell, the problem arose because the greed of the banks was allowed to go unchecked by the governments and their financial regulatory authorities. More money was created than was sensible, it's not all going to be paid back and hence many banks stand to go bust. Being as enormously leveraged as they are that's very bad news indeed as it implies the destruction of large amounts of capital.

Brown believed it was a US problem rather than ours - and he expects us to trust him with our future. :rolleyes:

mewbie_2

dopester wrote: »

Sorry Mewbie but with the financial world under incredible pressures, your statement was one of the most stupidest things I've ever read on MSE. Knowledge is power and protection.
....
Yet you glory in not checking a link explaining how the system works because of your disgust of "pompous self-called experts." Really clever Mewbie.
...
I think your attitude is more of clear backhanded-slap on what you believe the knowledge levels of this forum to be more than anything.

Oh well, I guess I was in the mood for an argument.

I am sorry to ruffle your feathers, and the other experts on here. You have all posted very important information, and sometimes made it easily accessible to those with less time, brain power or interest.

IMO. Fractional reserve banking is typical of a technical term that I feel is a step too far in my knowledge requirement. It's been a tough 2008, and a lot of prophecies have (finally) come true. I have now acquired enough knowledge of subjects that before the crash I had no interest in, and after the crash I will have no interest in.

I am full up.

My interest now is in moving through 2009 successfully - working hard, staying employed, being sensible with money commitments. I am, finally, more interested in taking positive steps than understanding the black arts of finance. Not my area.

I am sorry to sound dismissive of it, and truth be told it was unfair of me. But I typed as I felt.

So - what am I doing here if I don't want to learn about fractional reserve banking? Well, mainly, taking the p1ss as a cheap way to spend time, have a bit of fun, and very occasionally learn something.

Please don't talk down to me again, or I will have to type another load of garbage.

dopester

mewbie wrote: »

I am sorry to sound dismissive of it, and truth be told it was unfair of me. But I typed as I felt.

So - what am I doing here if I don't want to learn about fractional reserve banking? Well, mainly, taking the p1ss as a cheap way to spend time, have a bit of fun, and very occasionally learn something.

Please don't talk down to me again, or I will have to type another load of garbage.

Fine. There are other forum users here however. A link to Wikipedia which gives a clear explanation, written by an authority on the on fractional-reserve-banking, is no harm done.

"Self-pompous experts" was unnecessary on this forum... it is House Prices and the Economy. Certainly I know I've learnt from other members of the forum, via their posts. The "loonies" are more switched-on than many of the experts in these challenging times. I responded because that seemed unnecessarily hostile.

It may not be of interest to you but may be to others is my main point, and providing a link, or reading a link with clear info that educates, is no bad thing at all.

mewbie_2

dopester wrote: »

stuff

I agree 100%. I was making an unfair throwaway remark, then trying to justify it. But I have now managed to get back out of my @ss for a short while.

Minor point though. My reference to MSE loonies is genuinely affectionate, not mocking - the point being that all the bears have been called loonies for so long now - that using the term is a bit like homosexuals reclaiming queen, etc. for their own use.

So I apologise - it's not the first time, and won't be the last. Sorry Dopester. You guys do a lot of good work, and all I do is mess about.

dopester

mewbie wrote: »

Minor point though. My reference to MSE loonies is genuinely affectionate, not mocking - the point being that all the bears have been called loonies for so long now - that using the term is a bit like homosexuals reclaiming queen, etc. for their own use.

Great. I'm glad we are back on track. I didn't want to challenge you at all but was unsure how to interpret it. The mix here, including your many witty contributions, all make the forum educational and good fun.