Become your own e-bank

Discussion in 'Green Room' started by kcnychief, Mar 1, 2006.

  1. kcnychief

    kcnychief █▄█ ▀█▄ █ Political User Folding Team

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  2. Mastershakes

    Mastershakes Moderator

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    The banks have no guarantees either I guess. Cool idea nonetheless, wonder how long it will take the banks to shut it down.
     
  3. mlakrid

    mlakrid OSNN BASSMASTER Political User Folding Team

    Either way we as consumers would win, for banks to shut them down, they would have to lower their loan rates... doing that they lower the bottom line...

    Either way we win..

    we make money, or get money for cheaper...

    :D
     
  4. Mastershakes

    Mastershakes Moderator

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    or just lobby and have them shut down. period.
     
  5. Steevo

    Steevo Spammer representing. Political User Folding Team

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    Then of corse we the customer would pay for the lobbying after they were shut down, goodbye free checking........
     
  6. Son Goku

    Son Goku No lover of dogma

    This sorta thing could end up carrying too much risk for the average individual. Banks can do this, because they have depositors, and an account with the Federal Reserve, which in part backs the loans they right off. I say in part, because there is an element of "multiplying the money supply", where essentially 1 loan gets written off by another... Essentially, after the required reserve ration is set aside, the loan is considered an asset (as they expect to be paid), and then the same money is itself lent out again... :eek:

    However, that they have some funds (aka your savings account), and with enough loans, they don't expect to go belly up even with a few defaults. For an individual, living on a wage, a default could be disasterious...
     
  7. Ferral_Imp

    Ferral_Imp Moderator

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    Looks kinda cool though I don't know if I'd trust something like that.