Re:The Fed stalls the creation of a bank with a novel busine...
by kgwgk on Saturday September 22, 2018 @11:39AM
(#18046405)
> A bank with an empty balance sheet can give a loan. It is simply Dr Loans, Cr Deposits. That's it.
A banks needs capital, an empty balance sheet doesn’t cut it.
> Nobody ever makes cash deposits into a bank.
Yes, they do. If you pay $5 for a capuccino or whatever what do you think they are going to do with your $5 bill at the end of the day?
> The cash is just burned when the bank receives it (if it is worn enough).
So they never receive cash because nobody ever deposits cash. And at the same time they do receive cash and they just burn it. You have convinced me, there is something seriously wrong with the banking system.
A banks needs capital, an empty balance sheet doesn’t cut it.
> Nobody ever makes cash deposits into a bank.
Yes, they do. If you pay $5 for a capuccino or whatever what do you think they are going to do with your $5 bill at the end of the day?
> The cash is just burned when the bank receives it (if it is worn enough).
So they never receive cash because nobody ever deposits cash. And at the same time they do receive cash and they just burn it. You have convinced me, there is something seriously wrong with the banking system.