[split] Rabbi Skobac
Post Reply
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
26-07-2015, 05:53 PM
RE: [split] Rabbi Skobac
I'm wondering if his complain is that the Fed has artificially reduced rates and, in doing so, have messed with the economy a few times. That's not what he's saying but that is, at least, a legitimate complaint. The Fed contributed to the tech bubble and the housing bubble. They were not the only cause of the issues that we had because of the bubbles, but there is no denying that ridiculously cheap money helped fuel some pretty stupid behavior over the past 20 years and were contributing causes to the past two major recessions we had. It was not the only cause but it certainly was a significant factor; without very low rates out of the fed than neither the tech bubble nor the housing bubble could have really taken off the way they did. It was fuel for the fire. Without that fuel, the opportunity for the mass fraud and near criminal activity we saw would not have happened, or would not have been as severe most likely.

Those are legitimate complaints, but that's not what junior here is saying. Of course, I'm still confused as to what he actually is saying so who knows.

Shackle their minds when they're bent on the cross
When ignorance reigns, life is lost
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes BnW's post
27-07-2015, 10:33 AM
RE: [split] Rabbi Skobac
Quote:Lenders compete for my business by offering lower interest rates.
Real lenders(that pay you with cash) have to compete with banks that create money out of thin air.
Find all posts by this user
Like Post Quote this message in a reply
27-07-2015, 10:42 AM
RE: [split] Rabbi Skobac
I'm mostly confused on this title, I get it was a split off but how did this begin...

So a Rabbi isn't a real job?

"Allow there to be a spectrum in all that you see" - Neil Degrasse Tyson
Find all posts by this user
Like Post Quote this message in a reply
27-07-2015, 04:53 PM
RE: [split] Rabbi Skobac
(27-07-2015 10:33 AM)dimaniac Wrote:  
Quote:Lenders compete for my business by offering lower interest rates.
Real lenders(that pay you with cash) have to compete with banks that create money out of thin air.

You mean like a loan shark? Is that who you're talking about?

And, banks don't create money out of thin air. Again, you have absolutely no idea what you are talking about. You are embarrassing yourself here.

ClydeLee - A rabbi is a real job if he finances his studies from the money lenders at the temple, but not if he takes a bank loan. Get it?

Shackle their minds when they're bent on the cross
When ignorance reigns, life is lost
Find all posts by this user
Like Post Quote this message in a reply
[+] 2 users Like BnW's post
28-07-2015, 07:54 AM (This post was last modified: 28-07-2015 08:30 AM by dimaniac.)
RE: [split] Rabbi Skobac
(27-07-2015 04:53 PM)BnW Wrote:  And, banks don't create money out of thin air.
What???Blink Maybe it's hard to understand how banks create jobs but creation of money is common knowledge.
https://en.wikipedia.org/wiki/Fractional...ve_banking
https://en.wikipedia.org/wiki/Endogenous_money
http://macrobits.pinetreecapital.com/loa...ay-around/
And you say that you understand economics better than meConsider
Find all posts by this user
Like Post Quote this message in a reply
28-07-2015, 08:11 PM
RE: [split] Rabbi Skobac
I agree that creation on money is common knowledge. You must have wilfully misunderstood the role banks play. They don't create money. A central bank may create money but that's vastly different than a commercial bank.

And, I didn't say I understand economics better than you. I said you don't understand economics. Therefore, everyone with a basic understanding of the topic knows more about it than you.

Shackle their minds when they're bent on the cross
When ignorance reigns, life is lost
Find all posts by this user
Like Post Quote this message in a reply
[+] 2 users Like BnW's post
29-07-2015, 08:20 AM
RE: [split] Rabbi Skobac
(28-07-2015 08:11 PM)BnW Wrote:  They don't create money.
http://positivemoney.org/how-money-works...ate-money/
Find all posts by this user
Like Post Quote this message in a reply
29-07-2015, 09:36 AM
RE: [split] Rabbi Skobac
Also
http://krugman.blogs.nytimes.com/2012/03...nued/?_r=0
Quote:that banks create money — which every economics textbook, mine included, says they do
It's hard to believe that Nobel prize winner in economics doesn't understand banking, isn't it?
Find all posts by this user
Like Post Quote this message in a reply
29-07-2015, 07:54 PM
RE: [split] Rabbi Skobac
(29-07-2015 09:36 AM)dimaniac Wrote:  Also
http://krugman.blogs.nytimes.com/2012/03...nued/?_r=0
Quote:that banks create money — which every economics textbook, mine included, says they do
It's hard to believe that Nobel prize winner in economics doesn't understand banking, isn't it?
When you gonna get your Nobel, brother?



#sigh
Find all posts by this user
Like Post Quote this message in a reply
29-07-2015, 08:32 PM
RE: [split] Rabbi Skobac
(29-07-2015 09:36 AM)dimaniac Wrote:  Also
http://krugman.blogs.nytimes.com/2012/03...nued/?_r=0
Quote:that banks create money — which every economics textbook, mine included, says they do
It's hard to believe that Nobel prize winner in economics doesn't understand banking, isn't it?

It's hilarious that the guy who wants to eradicate the banking system because it's some kind of commie plot (or whatever your beef is) is referencing Krugman to back up his arguments. What Krugman is advocating in this article is tighter regulations on banking reserves. The multiplier effect he talks about is really about liquidity. But, if you want to argue that is the same as creating money, fair enough. I think the distinction is minor enough that, for purposes of this discussion, it doesn't matter.

So what? That's how the banking system works. They basically run a contended service, similar to your cable provider. You cable provider sells more bandwidth than they have on the assumption that not all customers will use the service at the same time (and they have contention ratios they follow to make sure it doesn't get too over subscribed). Banks do the same thing with deposits they take in to maximize their return and give more lending opportunities to people and businesses who need it. As long you don't get a run on the bank, it all works out. The government guarantees the deposits up to a fixed amount (via the FDIC in the US but other countries have their own version) to people have confidence their money is safe and don't all come asking for it at once. That's how the banking system works, and it generally works pretty well.

So, what is your problem? You want money changes like in the bible or loan sharks?

Btw, banks do not create jobs. They do not. What they create is liquidity. But, they do not create utility. Utility creates jobs. Liquidity makes it possible for companies that create utility to function. They do this by loaning money. Larger corporations will create additional liquidity by issuing bonds, which are a form of loan but not done through a commercial bank but an invesment bank, and there are investment opportunities. But, the point of bonds is to create liquidity so businesses have cash to spend. But, cash does not create jobs. Cash and liquidity simply provide the means by which utility can flourish.

But, none of this changes my original position which is this: you have no idea what you are talking about. Not a single clue.

Shackle their minds when they're bent on the cross
When ignorance reigns, life is lost
Find all posts by this user
Like Post Quote this message in a reply
[+] 1 user Likes BnW's post
Post Reply
Forum Jump: