Redpill me on banking

Watch hidden secrets of money by mike maloney

>>3231516
You know how most pools are 10% urine from everyone pissing in them? It's the same deal with banks. They're 10% nothing from all the fraud pissed into them.

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>>3231516
Love Bitcoin and your future is set in stone with all the bankers of the world.

Be the Bernank....

>>3231537
and take it with a grain of salt cause that guy is pushing his gold too much

>>3231516
buy high sell low
with jews you win

>>3231516
Jews

>>3231516
Jesus Christ chased them from the temple for a reason.

>>3231537
This >>3231581, if by "grain" you mean "bucket"

Once you realize that settling reserve requirements is functionally identical to relending new deposits, a lot of what sounds sinister goes away.

Long story short: Banks take deposits and make loans, transforming short term maturities into long term ones.

>>3231829
Because he was a dirty hippie?

>>3231516
Jews

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>>3232287
Can you explain your words to a brainlet?

>>3231548
He is supporting XRP

>>3232327
When you deposit money at a bank, the bank doesn't hold on to it. Instead, it lends it out. This makes a profit for the bank, which they also pass on to you in the form of interest on your account (or at least, no or fewer fees). If the new borrower deposits that money at the bank, the bank could lend the money out again and so on and so forth until they hit the reserve limit (set by the Fed), which is the minimum amount of money they have to hold on to. Rather than deal with figuring all that out all the time, what the bank will instead do is basically just keep making loans, even if they don't really have the deposits, then borrow money from another bank if they ended up making more than what their reserve requirement allows.

As far as maturity transformation: if you wanted to get a 30 year mortgage from me, I'd have to give you a 30 year loan and then I'm stuck. However, I can deposit my money at the bank instead (essentially lending it to the bank with an on-demand payment) and then you can get your 30-year loan from them. You get what you want and I'm not tied down.

Usury. The act of charging interest on a loan. One of the worst evils to commit against an entire society.

Now logically, you could say interest should be charged for the risk of failure to pay it back.
That is entirely sensible in the small scale, where the lender is risking say 50% of their $2000 liquid cash. It's a big risk for the lender and hardly harmful for society at that point.
Get to a larger scale, where the lender has $billions, that risk of $1000 is hardly a drop of water in the bucket. But they still charge a large amount of interest.
That's just the moral aspect of it there.

On a financial aspect, what happens is they're allowed to create value.
https://en.wikipedia.org/wiki/Fractional-reserve_banking
Fractional reserves only require them to have a portion of what they lend out actually available. They can technically lend out more than they have. Deposited value doesn't cover all lent value.
On a large enough scale, because interest increases the debt, the amount owed to the bank can exceed all of the currently existing currency.

This essentially turns the currency from an expected certificate of value into a numerator for remaining debt. Because the society, as a whole, cannot possibly both pay back the lenders in full AND retrieve something of value.

But well, banks aren't really bad besides that.
They offer a service, tracking and accounting for money. They offer jobs to preform this service.
They allow a lot of people to get started in life. For houses, businesses, living expenses, you name it.
It is a valid business. With plenty of non-malicious entities.