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Is fractional reserve banking legal?

borussiaboscombe
borussiaboscombe Posts: 18 Forumite
edited 6 July 2013 at 10:21PM in Mortgages & endowments
post moved
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Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    edited 6 July 2013 at 8:50PM
    Is fractional reserve banking legal?
    Yes.
    there was a case in america (jerome Daly 1968) who challenged the foreclosure on his property and won
    He lost on appeal.
    when you take a loan/mortgage the money they lend you is literally created out of thin air
    It really isn't.
  • ValHaller
    ValHaller Posts: 5,212 Forumite
    1,000 Posts Combo Breaker
    edited 6 July 2013 at 10:26PM
    You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'
  • i think you missed my point. when we enter into a contract ie for buying a house both parties have to put up "consideration" for example a house worth £100,000, the bank then lend that amount against the property. i have therefore offered something of value (the house) but the bank just create the money to lend me, therefore not actually putting anything of value into the agreement. this is not therefore legal consideration surely.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    noooooooooooooooooooo not this again for the love of God
  • ValHaller
    ValHaller Posts: 5,212 Forumite
    1,000 Posts Combo Breaker
    i think you missed my point.
    It is the wrong forum for your point. Please.
    You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'
  • i apologise if its the wrong forum, i have never posted before and dont know where i should have posted it, i thought i started a new discussion.
  • Southend1
    Southend1 Posts: 3,362 Forumite
    Ninth Anniversary 1,000 Posts Combo Breaker
    opinions4u wrote: »

    It really isn't.

    Where does it come from then?
  • He didnt lose on appeal the case was nullified, after the event, however the bank actually admitted that this is true, it is inherent in a fractional reserve system that money is literally created out of nothing. that is how inflation occurs. This isnt my "belief" it is a true fact!
  • ValHaller
    ValHaller Posts: 5,212 Forumite
    1,000 Posts Combo Breaker
    edited 6 July 2013 at 10:06PM
    i apologise if its the wrong forum, i have never posted before and dont know where i should have posted it, i thought i started a new discussion.
    Well, I gave you the link for where your discussion should go. Here it is again. http://forums.moneysavingexpert.com/forumdisplay.php?f=149

    Plenty of people happy to debate your contentions over there. On this forum, which is about helping people with their mortgage problems, your discussion is substantially off topic and to some extent unwelcome. Please understand that you yourself are welcome on the site and I am trying to send you somewhere where people will engage with you in a way which you will find welcome.
    You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'
  • SG27
    SG27 Posts: 2,773 Forumite
    Yep it's legal.

    And yes the whole banking system is pretty much con!!
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