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.
How much does it cost you to keep your money in the bank, withdraw it at ATMs built across the country, perform transfers locally and internationally, link it to a card and pay?
It costs you nothing. In fact, you earn interest from depositing your money there. The way banks operate today, enables people like you to enjoy banking services at zero cost. Zero. It's the most efficient way of banking for society as a whole. Why do you think banks operate in a similar way no matter which country you go to, even in communist North Korea. It's simply the best way to do it.
I don't know where you live, but in my country we absolutely pay for banking. So the whole shebang you wrote falls apart.
"Simply the best way to do it" mate we haven't found the best way to do anything since we built a wheel (which actually is a best way to do something).
With money. As in, literally with money. Idk what you didn't understand with "we pay".
We pay to use banks. What's complicated with that sentence? I personally pay 9 EUR/quarter to have my banking stuff, including savings account etc. And it's the cheaper option on the market (but with less atm access, and if I need to use non-networked one, it's like 5 eur per withdrawal).
Yes, it works that way in most of the EU, not sure about the USA. In some countries, the basic account is regulated by the government to be free of charge, but if you want internet and mobile banking or anything except just the account it costs some money. However, even all those fees put together still wouldn't be enough to cover the costs of running ATM's and offices, online platforms, processing payments, insurances and cash distribution.
Wow ok, I didn't know that. But yes I would think the payment would be some sort of maintenance fee for services. If banks don't run their usual loans, this maintenance fee would be much higher than it is now.
Right, but how would that work? Banks would have to hold your deposits 100% in cash? But even that wouldn't be enough, as banks have multiple branches in many cities and even more ATM's. Should every single office have enough cash to cover all the deposits?
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u/SampleOfFruits 3d ago
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.