It's Time To Get Painfully Honest: Banks Are Evil

[bitart]

It is hard for me to agree with you, even if not impossible.

Banks all over the world are exploiting both their customers, and the financial law.
I never could grasp the idea of why banks can borrow the money to someone else if they dont own it?

It is not logical at all, giving credits should be allowed only if the bank really has the money, not only numbers right?

That is why we should never let the financial system to create companies where you can deposit the money, but in case of all customers would try to get their money, bank would simply go bankrupt.

We should stop government help for banks, it is not fair at all to the rest of the community.

Interesting. I am really catched by your statement, Banks don't have money but only numbers. Apparently you can say banks really don't hold that much funds but it is not true to assume the amounts are only numbers or imaginary. I am studying banking system from quite a long, the process you pointing is known as Credit Creation. This process involves keeping aside of reserve funds for people who might come to withdraw their amount and on Earth it is all not possible that everyone come on same day. Consider even if something like this happen, banks can go for short term financing known as Call Money. So this problem is ruled out.
Now coming to numbers, when Banks accept deposit or give loans, they dont actually generate money but just shift ownership. It is like creating chain where amount get compounded at every level. This process is very vital for growth of economy and one of the leading reason why some countries are developed while others are not.

Banks do create money, not just shifting ownership. LDR or LTD ratio shows if the bank has more or less loans compared to the deposites. If the LTD ration is over 100% then the bank has given more loans compared to the amount of the deposited funds. In some countries, this LTD ratio is really strict, but if it's too strict, that can slow down the mentioned growth of the economy. Higher LTD ratio can speed up the growth, but too high LTD is risky, so it can be also bad for the growth.

[1713859669]

1713859669

[webtricks]

That made me laugh a little bit, they don't have money but numbers Sad, but also slightly true.
It is the same thing with the retirement pensions, in my country people who work now and pay taxes for that purpose, does not collect their money to have them withdrawn as a old age pension every month.
Instead of, they give their money to the goverment to be able to pay the people that are old right now.
So the conclusion is that it is like a giant ponzi, someday it will collapse.

I think that the same thing may happen with banks, but we need some smart replacement- and we are not ready yet.

The two are clearly distinct. The old age pension system in your country is a type of fix payment (liability) for your government. But when banks pay off loans to borrowers, they are generating asset not liability. In first case receiver is liability for party whereas in second case receiver is asset for party. You need to take out bad about banks from your mind, man!

[Silberman]

I know how they try to make money. They milk as much money as possible from their customers by introducing not-really necessary services and life insurance. They try to attract you with their promos. I just opened my account last week.  To be safe, I only open an account on top banks renowned worldwide.

I will probably prefer to open a bank account in a local bank than to keep feeding those transnationals banks that do nothing but harvest profits in your country and then take it away from your country so if you can support your local business even if those are banks since they are the lesser of two evils.

[Kevin77]

Banks will certainly get more powerful and "evil" since they control the money supply. After reading Animal Farm a long time ago, I've come to believe that if the present crop of bank owners are done away with, a newer and more evil set will come on the scene.

Even bitcoin that enjoys decentralisation is slowly caving in to control by the miners. A typical example is the ongoing hard fork issue. It's a human thing, though not acceptable. We all owe it to God to be true to His Word, and to ourselves to live according to our values. Only then will we see men and women who are able and willing to use the vast resources available to them for the betterment of the less priviledged

The banks don’t control the money supply. The Feds do. The banks owners can’t abuse their positions at least in America because of the Capital Requirement where they must have at least 7% of their own capital in the bank. But since Bitcoin doesn’t use a bank there is no reason to concern yourself with banks in the first. It is very hard for a bank owner to be able to abuse its position and get away with it.

[phr0stbyt3]

I didn't read the full post but my reply will be related to the topic. Yes it's true banks are actually evil as they basically control the amount of money we have and actually charge us when we want to withdraw our money. They even charge fees for not having the sufficient funds but there's literally nothing we can do as keeping funds at home is way more risky than keeping in bank.

[bluefirecorp]

Banks will certainly get more powerful and "evil" since they control the money supply. After reading Animal Farm a long time ago, I've come to believe that if the present crop of bank owners are done away with, a newer and more evil set will come on the scene.

Even bitcoin that enjoys decentralisation is slowly caving in to control by the miners. A typical example is the ongoing hard fork issue. It's a human thing, though not acceptable. We all owe it to God to be true to His Word, and to ourselves to live according to our values. Only then will we see men and women who are able and willing to use the vast resources available to them for the betterment of the less priviledged

The banks don’t control the money supply. The Feds do. The banks owners can’t abuse their positions at least in America because of the Capital Requirement where they must have at least 7% of their own capital in the bank. But since Bitcoin doesn’t use a bank there is no reason to concern yourself with banks in the first. It is very hard for a bank owner to be able to abuse its position and get away with it.

Yes, the banks are abusing the fact that the government are applying finical laws on us like taxes and like you said we need to have some of our capital in the bank, so they put monthly fees and charge us for using ATM and credit cards.

So, it is like governments and banks are controlling us that is why bitcoin is considered to be a free currency because we are our own bank and we don’t have to pay taxes.

[Rahar02]

We know banks systems has many disadvantages and disserve for who doesn't know about it, especially if someone has debts to bank. "Their influence and reach has metastasized to the point where we now live under a captive system. From our retirement accounts, to our homes, to the laws we live under -- the banks control it all. And they run the system for their benefit, not ours."
Banks were created to extract more money from customers for their own sake.
But, we still need it as the need to conduct transactions within some different cities will be easier. Moreover, govs and many companies were cooperate to distribute salaries. we can't easily evade from banks these days.

[hello_good_sir]

I know how they try to make money. They milk as much money as possible from their customers by introducing not-really necessary services and life insurance. They try to attract you with their promos. I just opened my account last week.  To be safe, I only open an account on top banks renowned worldwide.

I will probably prefer to open a bank account in a local bank than to keep feeding those transnationals banks that do nothing but harvest profits in your country and then take it away from your country so if you can support your local business even if those are banks since they are the lesser of two evils.

I agree with you, opening the bank account in some smaller ones is indeed supporting the local entrepreneurs and also your government, because small, local banks are surely paying all the taxes only in your country, and as you have already said, big banks that are spread worldwide are transfering the profits earned out of the country, usually paying lesser taxes.

On the other hand, I think that every bank is evil, because they are actually harvesting the society from money, by loans, life insurance or services that are basically useless.
If I would have any other option, my bank account could be never created- but i have to buy bitcoins somehow

[Silberman]

I know how they try to make money. They milk as much money as possible from their customers by introducing not-really necessary services and life insurance. They try to attract you with their promos. I just opened my account last week.  To be safe, I only open an account on top banks renowned worldwide.

I will probably prefer to open a bank account in a local bank than to keep feeding those transnationals banks that do nothing but harvest profits in your country and then take it away from your country so if you can support your local business even if those are banks since they are the lesser of two evils.

I agree with you, opening the bank account in some smaller ones is indeed supporting the local entrepreneurs and also your government, because small, local banks are surely paying all the taxes only in your country, and as you have already said, big banks that are spread worldwide are transfering the profits earned out of the country, usually paying lesser taxes.

On the other hand, I think that every bank is evil, because they are actually harvesting the society from money, by loans, life insurance or services that are basically useless.
If I would have any other option, my bank account could be never created- but i have to buy bitcoins somehow

I know it is a difficult choice but if you really need to use banking services, and at the moment we all need to do it then choosing a bank that operates in your country is a better bet, that is what I do, there is only one bank that is still owned by nationals every other single bank in my country were bought by international banks and it is in that bank that I keep my only bank account.

[grermezter]

Banks are the greediest institution ever on this earth, at first, Banks gave interest rate to the money saved for a period of time even though these profits aint much to begin with, now they are barely giving profits and rather they are charging us for useless services.

[BobK71]

The root of this is fractional reserve lending. It caused goldsmiths to go bankrupt, and banks today can face the same fate too.
It is not the bank as an institution, but its practices which have made its business risky.

There would be no problem with fractional reserve banking if the state didn't get involved.  (The bank lending out deposits is necessary for economic growth.)  If depositors had to absorb any losses by the bank explicitly, the system would be honest, risk would be properly priced, and the system would be stable, since depositors would be careful putting money in the bank, and would demand proper compensation via interest.

The 'problem' with an honest system is that deposits would be smaller and bankers wouldn't benefit as much.  So, in the modern world, the bankers join forces with the state to use the central bank, deposit insurance, etc. to create the illusion that deposits are safer than they deserve to be.  Of course, this creates all the problems we have today.

Politicians don't really understand banking or economics.  They ally with bankers because they receive the benefits of issuing public debt at low interest and of a propped-up economy.  The driver of the process is the bank -- once banks had our money, they started thinking how they could take even more of our money into themselves.

[xFiber]

Banks are the greediest institution ever on this earth, at first, Banks gave interest rate to the money saved for a period of time even though these profits aint much to begin with, now they are barely giving profits and rather they are charging us for useless services.

Yep, that pretty much sums it up. But they are so lucky they have been normalized over het year. This resulted in people to still store their capital in banks even though the interest rates are so low. Nowadays it actually costs you more money to maintain your savings account instead of gaining some profit. But I believe they will suffer really hard in the upcoming generation when the blockchain networks becomes global.

[n0ne]

Banks are the greediest institution ever on this earth, at first, Banks gave interest rate to the money saved for a period of time even though these profits aint much to begin with, now they are barely giving profits and rather they are charging us for useless services.

At the early days they're​ in need of users to support, for which they gave increased rate of interest. During the same the users is low, the employees were low, but now situation is exactly opposite to that. People need more but they cannot be fulfilled by banks. So some describe it as an evil. Personally I don't think so, because it has given a structured way to use their fiat.

[kryptqnick]

I know how they try to make money. They milk as much money as possible from their customers by introducing not-really necessary services and life insurance. They try to attract you with their promos. I just opened my account last week.  To be safe, I only open an account on top banks renowned worldwide.

I will probably prefer to open a bank account in a local bank than to keep feeding those transnationals banks that do nothing but harvest profits in your country and then take it away from your country so if you can support your local business even if those are banks since they are the lesser of two evils.

Well, I am also a user of local banks but I don't think they are better than international ones. It is just more convenient to have local currency. And sustaining a card with dollars or euros from some international bank is quite expensive in my country.
Nevertheless, I think banks not onlky rob people by offering them some insurances and services. They also make economy possible. At least, for know our society can't leave without them. Perhaps one day cryptos will be able to replace them but for know we should appreciate what we have.

[lionheart78]

I know how they try to make money. They milk as much money as possible from their customers by introducing not-really necessary services and life insurance. They try to attract you with their promos. I just opened my account last week.  To be safe, I only open an account on top banks renowned worldwide.

I will probably prefer to open a bank account in a local bank than to keep feeding those transnationals banks that do nothing but harvest profits in your country and then take it away from your country so if you can support your local business even if those are banks since they are the lesser of two evils.

Well, I am also a user of local banks but I don't think they are better than international ones. It is just more convenient to have local currency. And sustaining a card with dollars or euros from some international bank is quite expensive in my country.
Nevertheless, I think banks not onlky rob people by offering them some insurances and services. They also make economy possible. At least, for know our society can't leave without them. Perhaps one day cryptos will be able to replace them but for know we should appreciate what we have.

Banks maybe a great help to move the economy but this is at the expense of its users.  Bank is a blessing in an ever growing economy but a curse to its client.  They charge you lots of fees and we need to pay every movement of money we have to make.  The worst part is, you need the consent of the bank to be able to access your fund with all the needed requirements, without them you can bid good bye to your bank savings.

[Silberman]

I know how they try to make money. They milk as much money as possible from their customers by introducing not-really necessary services and life insurance. They try to attract you with their promos. I just opened my account last week.  To be safe, I only open an account on top banks renowned worldwide.

I will probably prefer to open a bank account in a local bank than to keep feeding those transnationals banks that do nothing but harvest profits in your country and then take it away from your country so if you can support your local business even if those are banks since they are the lesser of two evils.

Well, I am also a user of local banks but I don't think they are better than international ones. It is just more convenient to have local currency. And sustaining a card with dollars or euros from some international bank is quite expensive in my country.
Nevertheless, I think banks not onlky rob people by offering them some insurances and services. They also make economy possible. At least, for know our society can't leave without them. Perhaps one day cryptos will be able to replace them but for know we should appreciate what we have.

Banks in the way the economy works at this time are needed but instead of being a provider of services, they are the ones doing a service to themselves and stealing money out of the people by doing shady maneuvers on the markets, losing and then wait for the taxpayer to pay the bill.

[BobK71]

The pension system has been many times compared to a pyramid scheme. Sad part is, the system was designed to make money from what you're paying them during your life and after 30 or 40 years have enough to support you and itself. Somewhere something went wrong along the way and the system lost money left by its first "investors" and became indebted and forced to work like a pyramid, that's why now pension is obligatory and functions like a tax, while it should be voluntary.

Everything is a pyramid scheme.  The pension system is just one form of promises.  In modern times, the state and banks don't steal money outright, but set up a system where state power is used to inflate the value of promises artificially.  Money, debt, stocks, and everything else built on top of them are just promises.

If you don't believe in the promises, you're fighting the power of the entire system.  If you believe in them, you will lose big when the promises turn out to be empty.  It might take a long time, but the promises are always broken eventually, because the elites have the incentives to destabilize the promises by issuing more, or by using deceptive means to support them.

Promise breaking is the core nature of the modern world, because promises are the vehicle of choice by the elites to enrich or empower themselves.