If the bank goes belly-up, they are lost unless they (as well as demand deposits) are covered by deposit insurance. If they are not, neither fractional, nor full reserve requirements will help here, right?
Right. And then you say that I don't know what bank runs are and what fractional reserve banking is (for that matter), lol... Correct. How come? Lots of reasons, including that you are confusing bank runs with "going belly-up", but the biggest reason is probably that I explained it to you and you said I was wrong, and then refused to explain why I was wrong. If you remember, I told there are many reasons for a bank run. Going belly-up is a good reason for a bank run, isn't it? |
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So what would happen to the term deposits in the case of a bank run?
I don't know. Do you? If the bank goes belly-up, they are lost unless they (as well as demand deposits) are covered by deposit insurance. If they are not, neither fractional, nor full reserve requirements will help here, right? Right. And then you say that I don't know what bank runs are and what fractional reserve banking is (for that matter), lol... Correct. How come? |
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So what would happen to the term deposits in the case of a bank run?
I don't know. Do you? If the bank goes belly-up, they are lost unless they (as well as demand deposits) are covered by deposit insurance. If they are not, neither fractional, nor full reserve requirements will help here, right? Right. And then you say that I don't know what bank runs are and what fractional reserve banking is (for that matter), lol. How could fractional reserve banking prevent banks from going belly-up and thereby people from losing their money? |
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So what would happen to the term deposits in the case of a bank run?
I don't know. Do you? If the bank goes belly-up, they are lost unless they (as well as demand deposits) are covered by deposit insurance. If they are not, neither fractional, nor full reserve requirements will help here, right? |
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Okay, you get the benefit of the doubt. If so, it follows that these unlucky men have only demand deposits? What about those who have term deposits, are they present?
I don't know I didn't ask them. It doesn't actually matter. What matters is how fractional reserve banking could help them (or even full reserve banking for that matter)... When you find out please let us know. No, this won't do. You said previously that fractional (full) reserve banking is only applicable to demand deposits... Do you deny that now? Nope. So what would happen to the term deposits in the case of a bank run? |
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Okay, you get the benefit of the doubt. If so, it follows that these unlucky men have only demand deposits? What about those who have term deposits, are they present?
I don't know I didn't ask them. It doesn't actually matter. What matters is how fractional reserve banking could help them (or even full reserve banking for that matter)... When you find out please let us know. No, this won't do at all. You said previously that fractional (full) reserve requirements are only applicable to demand deposits... Do you deny that now? |
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I don't know what Northern Rock is. Do you seriously (lol) think that if I don't know what Northern Rock is, I don't know what a bank run looks like?
I think that's one bit of evidence to add to all the other indications that you don't know what a bank run is, or what fractional reserve banking is for that matter. So, as I can guess, the crowd standing there is an evidence of a bank run, right? I wouldn't say a crowd standing there is evidence of a bank run. But that is in fact a photo of a bank run. Okay, you get the benefit of the doubt. If so, it follows that these unlucky men have only demand deposits? What about those who have term deposits, are they present? I don't know I didn't ask them. It doesn't actually matter (unless the crowd consists of them). What matters is how fractional reserve banking could help them (or even full reserve banking for that matter) in the case of a bank run... |
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I don't know what Northern Rock is. Do you seriously (lol) think that if I don't know what Northern Rock is, I don't know what a bank run looks like?
I think that's one bit of evidence to add to all the other indications that you don't know what a bank run is, or what fractional reserve banking is for that matter. So, as I can guess, the crowd standing there is an evidence of a bank run, right? I wouldn't say a crowd standing there is evidence of a bank run. But that is in fact a photo of a bank run. Okay, you get the benefit of the doubt. If so, it follows that these unlucky men have only demand deposits? What about those who have term deposits, are they present? If they are, how would fractional reserve banking help them for that matter? |
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I don't know what Northern Rock is. Do you seriously (lol) think that if I don't know what Northern Rock is, I don't know what a bank run looks like?
I think that's one bit of evidence to add to all the other indications that you don't know what a bank run is, or what fractional reserve banking is for that matter. So, as I can guess, the crowd silently standing there is an evidence of a bank run, right? Also, how should you know that all those people have only demand deposits for that matter? |
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What is Northern Rock and what are all those people doing there (it seems they are doing nothing, lol)?
Seriously? (You keep adding "lol" so I guess you're not being serious. But I don't understand the joke.) What seriously? Don't know about you and Northern Rock, but in these quarters if a bank has problems, you'd better wait till an insurance agency comes and takes over (otherwise, you may actually lose your money)... I can't tell if you're serious or joking. Partly because you keep adding "lol", which generally is an indication that you're joking, and partly because you claim to be knowledgeable of what a bank run is but you apparently don't know about the most famous bank run of the last century. I don't know what Northern Rock is. Do you seriously (lol) think that if I don't know what Northern Rock is, I don't know what a bank run looks like? I don't know either what the people are doing there, they seem to waiting for something. Maybe, their money? Though I see a job vacancy note there. Are they looking for a job? |
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What is Northern Rock and what are all those people doing there (it seems they are doing nothing, lol)?
Seriously? (You keep adding "lol" so I guess you're not being serious. But I don't understand the joke.) What seriously? Don't know about you (and Northern Rock, for that matter), but in these quarters if a bank has problems, you'd better wait till an insurance agency comes and takes over (otherwise, you may actually lose your money). Though it may take some time (less than a month usually)... And it was a question, not a joke (lol)... |
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You don't even need to run to the bank itself to withdraw your fiat deposits, either. In most cases, you can do so over the Internet as well (and then cash through an ATM), lol
Is that a joke or something? To get cash, you have to go to a bank, or at least to an ATM. You can't download cash over the Internet. Yes, but every bank which I recently trusted my money to allowed to transfer funds to another account in another bank without a personal visit to the bank. So, as you can see, there is no need to literally run to the bank... ? The whole point is that there are times when people don't trust their banks, and there are also times when people need cash. So sometimes there is a need to literally run to the bank. With Bitcoin, the actual base currency can be transferred over the Internet. As you said it yourself, it is a metaphor, lol Have I? Looks to me like people are literally going to the bank. Maybe they drive nowadays rather than run, but that'd make it an anachronism, not a metaphor. By the way, there are pretty low limits as to how much you can withdraw in one day from an ATM. What is Northern Rock and what are all those people doing there (it seems they are doing nothing, lol)? |
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Nevertheless, if we exclude demand deposits out of consideration (i.e. taking into account only term deposits), will this also effectively put an end to FRB?
I'm not sure what you're asking. If there are no demand deposits, I'm not sure whatever is left can be called fractional reserve banking. It'd certainly be much different from what is today known as fractional reserve banking I'm sure that you are unsure (but it seems to be primarily your problem, lol) Who is the "we"? What does it mean to exclude demand deposits "out of consideration"? Taking into account only term deposits for the purposes of what? What does it have to do with the elimination of FRB? 1) "We" means I in an academic parlance (don't take too personal, I didn't mean you, lol). 2) "exclude out of consideration" means leave out of consideration (if you are unfamiliar with the phrase, it is your problem really). 3) For the purpose of seeing that FRB would be just fine under these conditions. 4) It doesn't have anything to do with FRB (let alone its elimination, lol), that was my point exactly (see 3)... |
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You don't even need to run to the bank itself to withdraw your fiat deposits, either. In most cases, you can do so over the Internet as well (and then cash through an ATM), lol
Is that a joke or something? To get cash, you have to go to a bank, or at least to an ATM. You can't download cash over the Internet. Yes, but every bank which I recently trusted my money to allowed to transfer funds to another account in another bank without a personal visit to the bank. So, as you can see, there is no need to literally run to the bank... ? The whole point is that there are times when people don't trust their banks, and there are also times when people need cash. So sometimes there is a need to literally run to the bank. With Bitcoin, the actual base currency can be transferred over the Internet. As you said it yourself, it is a metaphor, lol |
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I see no difference between what we have now and the system where would be no demand deposits, in respect to fractional reserve banking. Before you ask why so, answer first why it should be otherwise (to me, FRB would work even better in this case, as it would with no reserve requirements at all)...
Without demand deposits you wouldn't have checking accounts. You see how that's different from what we have now, right? I don't see how it would be different with respect to fractional reserve banking. Do you get me? No. Okay then |
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You don't even need to run to the bank itself to withdraw your fiat deposits, either. In most cases, you can do so over the Internet as well (and then cash through an ATM), lol
Is that a joke or something? To get cash, you have to go to a bank, or at least to an ATM. You can't download cash over the Internet. Yes, but every bank which I recently trusted my money to allowed to transfer funds to another account in another bank without a personal visit to the bank (i.e. remotely over the Internet or by the phone call). So, as you can see, there is no need to literally run to the bank... |
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I see no difference between what we have now and the system where would be no demand deposits, in respect to fractional reserve banking. Before you ask why so, answer first why it should be otherwise (to me, FRB would work even better in this case, as it would with no reserve requirements at all)...
Without demand deposits you wouldn't have checking accounts. You see how that's different from what we have now, right? I don't see how it would be different with respect to fractional reserve banking. Do you get me? |
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In any case, you haven't answered my question. What's a bank run in 100% reserve banking? There's no such thing.
People running to banks to get their money back (possibly out of the fear of losing the money, though there are other reasons as well). I don't think that alone qualifies as a bank run. But if you want to call it that, then whatever. Yes, in 100% reserve banking, people will sometimes make withdrawals. Sometimes they'll even run to the bank to do so. (Although, with Bitcoin, there's really no reason to run to the bank to make a withdrawal - you can do so over the Internet.) You don't even need to run to the bank itself to withdraw your fiat deposits, either. In most cases, you can do so over the Internet as well (and then cash through an ATM), lol |
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If $200 could earn you $2000 monthly, I would definitely consider it as a good investment. So, why not pay 5 bucks to get $600+?
 What are you talking about? Who talk about $200 could earn $2000 a month? are talking about this, in case you didn't notice. You pay some bucks to access Internet, and earn something writing posts here (which you wouldn't if you hadn't Internet access). Or elsewhere, doing anything that could possibly yield $2,000 a month (or more, for that matter). At first, Stunna paid 1.2 BTC for 2,000 posts, and if you got in time, you could earn around $1,500 (but that was only once)... What's wrong with this? |
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Nevertheless, if we exclude demand deposits out of consideration (i.e. taking into account only term deposits), will this also effectively put an end to FRB?
I'm not sure what you're asking. If there are no demand deposits, I'm not sure whatever is left can be called fractional reserve banking. It'd certainly be much different from what is today known as fractional reserve banking I'm sure that you are unsure (but it seems to be primarily your problem, lol) I see no difference between what we have now and the system where would be no demand deposits, in respect to fractional reserve banking. Before you ask why so, answer first why it should be otherwise (to me, FRB would work even better in this case, as it would with no reserve requirements at all)... |
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