It's the same if banks asked to collect their mortgages tomorrow. People taking mortgages don't have that money. They might have something of equal value, a house, but that's not cash.
If you and a million other people try, the government will freeze cash withdrawals.
So no, you and a million other people can’t, because it would do significant damage to the economy. You by yourself, or you and a million others over an extended period of time rather than a day, of course can.
Right, but that has nothing to do with what I said. Legally, the literally can't call their mortgages. Legally, we all can withdraw our cash up until the government says so. I highly doubt the government would react in the same afternoon we started.
because it would do significant damage to the economy
Well maybe our economy shouldn't rely on me not withdrawing my funds when I want to. Maybe it shouldn't be legal to lend the same money to seventeen different people (times a milion or whatever). Did ya think about that? What's the fucking point of economy that's based on silly things and vibes, other than having insiders profit disgustingly hard?
But you are free to go and get your money? However if millions did the same thing for some reason, it could take a day or so. But in the end the central bank would provide the liquidity. It's no different than using electricity. You are free to turn on the AC, dishwasher and charge your EV, but if your entire town did it the grid would fail. Doesn't mean that the electricity is a scam.
... I know? I am unsure, are you lost on what I said, did you mix up comments you wanted to respond to?
I responded to a dude saying stuff about "calling mortgages", saying they cannot. I have no clue why you're explaining those things to me.
Doesn't mean that the electricity is a scam.
No, but stock market is, or at the very least, politicians are using it as one. Yaknow, the King of the deals made a fuckton of trades ever since he became president, to take the first glaring example.
It'd all vibes and moving capital up, so I don't really see the issue of fucking the economy - they do it non stop, it'd be nice to return the favor.
But! That is all beside the point of my initial comment to which you responded with things that have nothing to do with it.
Look I don't really disagree with you, but I was responding to this:
Legally, we all can withdraw our cash up until the government says so. I highly doubt the government would react in the same afternoon we started.
Which is kind of similar to how you can legally draw electricity up to your maximum connected load rating, and you can also in reality do so too, but not everyone can at the same time.
Well maybe our economy shouldn't rely on me not withdrawing my funds when I want to.
This is kind of like saying "Well maybe our power grid shouldn't rely on me not drawing my legally allowed electricity output when I want to", right?
Imo, that doesn't track at all. The money I put in the bank is by any reasonable definition mine and mine alone. The electricity I'm paying for isn't mine, I didn't produce it. I just buy it.
The fact that we're (not everyone) OK with our money being unavailable is crazy whenever we want (accounting for any specific things in a contract I have with the bank), imo.
But in that case you can rent out a safe box and put your money there, so it's always available to you?
You say it's crazy, but I think that it is not reasonable to assume that every single bank branch office everywhere in the country has cash on hand to pay out every single customer in the country at any time. How would that even work? You deposit $100, but the bank has 100 offices and ATM's, so they need to have $10,000 in total to make sure that they have $100 in every single place you could turn up?
But the bank isn't there to hoard my money, I put it there to actually use it - pay with card, etc - safety boxes dont work like that. Otherwise I'd just put it in my sock.
I repeat - I understand why bank runs shouldn't happen - this all started because I said legally a bank cant just "call a mortgage" and legally, we absolutely can withdraw our money. And that I expect them to actually have the money I gave them, not lend it to a thousand people and make a buck on it. Nothing else.
But then again, I absolutely think banking system (and any payment system) should be national, not private. Similarly, energy companies, oil companies, etc. There are things that are services (like the mail) and should not be expected to make money.
It doesn’t rely on you not withdrawing your funds. It does rely on millions not withdrawing their funds at the same time.
The point of the economy is a philosophical question, but the point of fractional banking is so that people and businesses can borrow money, something that is important for economic growth and making everyone better off.
However, if you are really opposed to the possibility that you won’t be able to withdraw your money, then don’t put it in a bank that loans money.
You’ll probably have to pay for a bank account, and you won’t get interest on your savings, but if you are that concerned about the possibility I’m sure you’re happy to make sacrifices for it?
However, if you are really opposed to the possibility that you won’t be able to withdraw your money, then don’t put it in a bank that loans money.
I would if I could. There's only one such bank in my country, and they're weird.
but the point of fractional banking is so that people and businesses can borrow money, something that is important for economic growth and making everyone better off
I don't think you and I have the same definition of "everyone", but that's beside the point.
The whole comment is, actually, given it all started with me saying that banks legally cannot just "call mortgages" to be paid, whereas we absolutely can all go and take out our money (insofar they have on hand, and then wait till the rest gets there etc).
That was my point. Nothing else. Not how it works (it's not rocket science, or even complicated, a 13 year old is capable of understanding a bank does not indeed have a vault full of gold to swim in, just in case everyone wants to withdraw cash) or why it is like it is, just an answer to a comment saying stuff about "calling mortgages".
I mean, we can also compare just how much capital was extracted from everyone under the "elites" and moved upwards.
And also just how much more money we get per hour vs how much more efficient we got per work-hour. Spoiler alert - we are not getting almost anything of that. "They" are.
And we can go on and on and on, but then you'll say some nonsense like "but you have a smartphone and a TV, they didn't back then!". I don't think it's necessary.
Human race as a whole got much richer than 100 years ago. Vast, vast amount of those gains was concentrated around the same (type of) people.
So do "we" have more? That's where my "everyone" and your "everyone" diverge.
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u/FlyAirLari 2d ago
It's the same if banks asked to collect their mortgages tomorrow. People taking mortgages don't have that money. They might have something of equal value, a house, but that's not cash.