About Me 0089: foreclosure list

@rebdav

You're against fractional reserve banking? Really? And you have your Master's in Finance?

Here are the broad steps of how a deposit taking bank works.

1) A depositer places money in the bank, earning an interest rate for doing so.

2) The bank lends the money to a borrower, earning a higher interest rate for doing so.

At this point, the bank has both an asset (the loan) and a liability (the deposit) on its books. They cancel each other out and the bank's true income comes from the difference in interest rates.

When you speak to 'free money creation' I presume you refer to the money-multiplier effect:(http://en.wikipedia.org/wiki/Money_multiplier).

I think it is important to note that no new wealth is being created - the money supply is simply being expanded beyond the constraints of currency, allowing for more economic activity. This is a good thing. The money-multiplier does not effect the banks balance sheets since the banks stock of assets (cash reserves and loans) and liabilities (deposits) remain in equilibrium.

On a more substantive note, the abolition of fractional reserve banking would be terrible. It would lead to the following conditions:

-> Banks would be able to lend only out of their profits, since they would have to maintain enough cash on hand to cover all their liabilities. This would dramatically reduce the financial sectors ability to lend money.

-> Ignoring the catastrophic effects on industry (especially for small businesses which can't issue bonds) this would dramatically raise the cost of borrowing money for consumers. Starting a business or buying a house becomes much more expensive, in the unlikely event that you can find someone to lend you money.

[marxist analysis] This entrenches class divides [/marxist analysis]

-> Banks would not be able to pay interest rates on deposits, since deposits are no longer income generating. This reduces any incentive towards saving.

These are just a few of the consequences of the abolition of fractional reserve banking. I'm positive that a wiser man could come up with many more.

The only theoretical downside of fractional banking is the possibility that the bank will not be able to repay you the money you've deposited. Fortunately a balanced regulatory approach, which balances reserve levels with the risk of investments minimizes that chance. Federal Deposit Insurance means that even in the event of a bank bust, depositors will still recieve their savings.

For what it is worth, I agree that what happened in this specific case is outrageous. I would hesitate to suggest criminal prosecutions, since arresting a filing clerk is probably not going to fix anything.

While oil washed onto the shores of Florida, Democrats got wiped out of the House and Glenn Beck brought the Tea Party to Washington, Black Planet members were equally busy debating how these stories were not only affecting them but impacting the future of African Americans. However, none of that really matters because what bubbled up to the top of our most active list was far from discussion on Capitol Hill. Take a look below to see who and what moved the meter on Black Planet. Recognize yourself or any of your friends on our list?

Most Popular Profile

Member MZHONEEBROWN squashed the competition with her little high heel and climbed to the very top of our most popular profile list. A quick visit to her page and you’ll understand why. She’s a single mother, author, dental professional and still finds time to stay connected to thousands of her friends on Black Planet. If Black Planet had a list of 30 people doing big things under 30, she’d get our nomination.

Most Popular Political Figure

President Barack Obama has taken a lot of heat lately from Republicans, members of his own party and the BP community if you ever visit the Current Events boards. However, you still couldn’t stop yourself from clicking on his profile page and that makes him the most popular political figure in our community.

Most Helpful Member

Member Nuage was recognized as a BlackPlanet Rising Member of the Month for a reason. While you were sleeping she was busy sending aid to Haiti. Yeah, we think she’s a saint, too.

Sexiest Destination

We think we have some of the most attractive members and now you can confirm what makes them so sexy in our quiz. What’s Your Sexiest Quality answers the big question: what about you drives the opposite sex (or same sex) wild. This is where we make that annoying cat purring sound.

Want to see what else topped the list? Check out the photo gallery below.

bench craft company scam

About Me 0089

Tuesday, December 28, 2010

foreclosure list

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

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<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

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<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

<b>News</b> - Reese Witherspoon, Jim Toth Engaged! - Healthy Lifestyle <b>...</b>

Alfred Kahn, 'Godfather' of Airline Deregulation, Dies at 93

Cable <b>News</b> Ratings 2010: Top 30 Programs Of The Year (PHOTOS)

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