Be careful bulls..............

mewbie_2

Cleaver wrote: »

Is it actually fractional-reserve banking that you oppose then, rather than debt?

Blimey Cleaver. Bit impressed by that.

Incidentally this is in no way an aspersion on you, your wife, or pets if you have any. So no need for anyone (you know who you are) to report this post to Abuse.

Cleaver

mewbie wrote: »

Blimey Cleaver. Bit impressed by that.

Incidentally this is in no way an aspersion on you, your wife, or pets if you have any. So no need for anyone (you know who you are) to report this post to Abuse.

Reported as abuse and moved to site feedback.

mewbie_2

Cleaver wrote: »

Reported as abuse and moved to site feedback.

I've been reporting your posts for the last six months and it has got me nowhere.

As for site feedback.
User: I'd like to raise a point
MSE: Here is our answer, and we've closed this thread to finish the 'conversation'

nearlynew

Cleaver wrote: »

Is it actually fractional-reserve banking that you oppose then, rather than debt?

I take it as a given that fractional reserve banking is the cause of the debt.

Cleaver

nearlynew wrote: »

I take it as a given that fractional reserve banking is the cause of the debt.

Well, fractional-reserve banking is one part of debt, sure. But only a part. Just out of interest, and to ask the question again, if the bank in question had enough deposits to cover their loans would you be in favour of my example with the small company? Or still not okay?

nearlynew

Cleaver wrote: »

Well, fractional-reserve banking is one part of debt, sure. But only a part. Just out of interest, and to ask the question again, if the bank in question had enough deposits to cover their loans would you be in favour of my example with the small company? Or still not okay?

That depends.



What are you using as money ?

Cleaver

Just realised that I keep asking you questions Nearly without giving my opinion.

Obviously banks have made stupid loans and taken on ill-advised debts. My solution to that would be to create a cuture of sensible lending based on intelligence and research and at a sustainable, managable level. Very difficult to do of course, but I think that's what needs to happen.

Advocating the complete elimination of debt and lending seems a rather rash, unpragmatic solution to a very complex problem in my eyes. You crypically said it could be done though, so I'll keep an open mind if you want to post the solution?

Cleaver

nearlynew wrote: »

What are you using as money ?

Savings, profits and general reserves that the bank has under its control.

I already see your answer coming... they shouldn't be lending out other people's money as it doesn't belong to them.

Communism it is then.

nearlynew

Cleaver wrote: »

Savings, profits and general reserves that the bank has under its control.

I already see your answer coming... they shouldn't be lending out other people's money as it doesn't belong to them.

.

But when you put "money" in the bank it becomes the bank's money.
Most people think of puting money in the bank as the bank "looking after their money".

Ignoring the arguments about what money is or how it is created, this couldn't be further from the truth.

Cleaver

nearlynew wrote: »

But when you put "money" in the bank it becomes the bank's money.
Most people think of puting money in the bank as the bank "looking after their money".

Ignoring the arguments about what money is or how it is created, this couldn't be further from the truth.

As I said, I thought that would be the answer. So the question still remains then: if loans don't exist, how does a company start? Without people investing in equities, how do companies raise money?

I'm genuinely interested by the way. I'm a bit of a lefty at heart, and I love the idea of a Tesco and Barclays free world. I just can't visualise how it would work. So how would it work? I mean really tell me the mechanics of how would it work, rather than slogans like "remember, inflation is theft" and "debt is poison" etc. Because that's tin foil hat stuff rather than a rational, sensible alternative to capitalism and sensible, sustainable growth and lending.