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comment by steve
steve  ·  4524 days ago  ·  link  ·    ·  parent  ·  post: How about we take another look at banking?

    They are providing a service and should be paid accordingly.

I get frustrated by fees, fines, etc., but the thing that makes me uneasy about their system is the leveraged nature of the whole thing. Don't get me wrong, I know that in some way, it has to be done, but I think they are overstretched. I'm clearly no economist, but the idea that my bank can lend out like $15 for every $1 it has in deposits seems strange to me. I feel like it is an inflationary worm that just keeps crawling out of control. It doesn't sit well with me that they can earn interest on such a huge multiple of money they don't actually have.





speeding_snail  ·  4524 days ago  ·  link  ·  

    I'm clearly no economist, but the idea that my bank can lend out like $15 for every $1 it has in deposits seems strange to me.

Exactly this is what worries me and it is the exact same problem which the little girl talked about. (shamelessly ripped from thenewgreen's reply)

I'd like to see this changed for a safer economical system, but it seems I would like to see quite a lot changed...