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re: What if everyone globally withdrew their money from their bank?
Posted on 9/6/23 at 4:43 pm to mattchewbocca
Posted on 9/6/23 at 4:43 pm to mattchewbocca
Banks don’t just sit on cash bruh
0
Posted on 9/6/23 at 5:46 pm to lsufan1971
quote:
Most community banks borrow money based on the average of their balance of funds. If everyone withdrew their money the banks go under.
And another financial institute takes all of their notes, and you just pay them, but they likely introduce some frickery to skim some of the easiest things into default.
Posted on 9/6/23 at 5:47 pm to mattchewbocca
Only for the first few that were lucky enough to get ALL of their money out.
Posted on 9/6/23 at 6:13 pm to mattchewbocca
quote:
So how does it work? I know they don’t have the money but how does currency today work cuz we’re still using paper currency as well as digital. So how do they determine a persons wealth?
I am not being a smartass here: Despite the fact I enjoy making long detailed posts going into Macroeconomics 101 via-a-vis money supply (M0, M1, and M2) and money creation and destruction is beyond the scope of a post. I am pretty sure if you look on YouTube you can find plenty of lessons on this area of economics. It was a bit of a brain-bender when I first encountered it in class.
As an alternative, and some will find it silly, when I want to learn a new subject from the ground up I often go to Amazon and look for textbooks that are designed for 101/102 or survey-type college courses. While textbooks are extraordinarily expensive now you can often find used ones that are 1 or 2 editions old that profs no longer teach from for barely more than the cost of shipping from some of the large textbook 3rd party sellers. This type of textbook is usually approachable for anyone but usually far more comprehensive than Youtube and the like.
Posted on 9/6/23 at 7:08 pm to mattchewbocca
quote:
And demanded to be paid cash
Man, you better call JG Wentworth! LMFAO
Posted on 9/6/23 at 8:03 pm to SantaFe
quote:
Most local banks usually only have about $10,000 (or less) of cash on hand
100% bullshite
Posted on 9/6/23 at 8:08 pm to DCtiger1
quote:
100% bullshite
I was going to say the same, I have withdrawn more than that well over a dozen times in my like along with the form 8300 that comes with it. I have no idea how much my branch has but there was never any sort of concern about if they had the money.
Posted on 9/6/23 at 8:41 pm to Obtuse1
I deposit tens of thousands of cash weekly for my business. I’ve gone in and withdrawn 30k plus multiple times with zero issue, they have that in their drawer.
If you’re going to withdraw 100k or more in cash they may need to order it, but the idea they only have 10k in cash on hand is idiotic. That’s 10 customers making a 1000 withdrawal, which in a given day is 100% probable.
If you’re going to withdraw 100k or more in cash they may need to order it, but the idea they only have 10k in cash on hand is idiotic. That’s 10 customers making a 1000 withdrawal, which in a given day is 100% probable.
This post was edited on 9/6/23 at 8:42 pm
Posted on 9/6/23 at 9:04 pm to mattchewbocca
Banks would collapse and there would be the greatest economic crash in human history if only 1% of the population did this.
Posted on 9/6/23 at 11:49 pm to mattchewbocca
There are so many things wrong with this question I don’t even know where to start. To begin with, it’s impossible. No bank actually has all of its customers’ money. If everyone even tried, you’d need a gun and a very large garden, because the world would shut down.
Posted on 9/6/23 at 11:59 pm to MyRockstarComplex
quote:
Welcome to how we all felt when we figured out how fiat money in a fractal banking system works.
Thanks Oba...I mean thanks FDR.
Posted on 9/7/23 at 2:37 am to mattchewbocca
Why would we do this? I don’t have enough mayo jars
Posted on 9/7/23 at 5:43 am to Gorilla Ball
If we did this what would happen to the banks???
Posted on 9/7/23 at 6:33 am to mattchewbocca
quote:
What if we never had banks to begin with?
You’d be a serf, working for a lord, farming fields by manual labor 12 hours a day, 7 days a week.
Why are you trying to destroy society is the bigger question here.
Posted on 9/7/23 at 8:20 am to mattchewbocca
Hypotheticals are stupid
Posted on 9/7/23 at 9:22 am to Gorilla Ball
Just about every world bank operates on Fractional Reserve Banking System
Pros of Fractional Reserve Banking
Allows banks to utilize the money that would otherwise just sit unused. Lets banks lend money to individuals and businesses who need it, growing the economy. Through these loans, banks collect fees and interest, growing returns to fund new loans
In a nutshell...if we pulled all of our money there would be a global collapse.
Link
Pros of Fractional Reserve Banking
Allows banks to utilize the money that would otherwise just sit unused. Lets banks lend money to individuals and businesses who need it, growing the economy. Through these loans, banks collect fees and interest, growing returns to fund new loans
In a nutshell...if we pulled all of our money there would be a global collapse.
Link
This post was edited on 9/7/23 at 9:27 am
Posted on 9/7/23 at 9:24 am to mattchewbocca
You need a hobby
Posted on 9/7/23 at 9:27 am to SantaFe
quote:
usually only have about $10,000 (or less) of cash on hand.
Who the frick told you this?
Posted on 9/7/23 at 9:32 am to mattchewbocca
A global meltdown likely resulting in massive warfare possibly resulting in some kind of post-apocalyptic bartering economy reminiscent of early human tribes.
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