Micael on Nostr: It’s normally believed that banks lend nine out of then dollars deposited believing ...
It’s normally believed that banks lend nine out of then dollars deposited believing there are nine claims on the same dollar.
This is not true. They lend at least 90 units on bank credit (bank liability) out of 10 dollars deposited.
Why do assets and liabilities match in their balance sheet? Because you promise to pay back the loan plus interest (promissory note) is an asset to the bank an it’s the original “value” backing the bank credit.
The bank steals this promissory note from you; and then hey sell it for cash if you demand cash instead of bank credit.
This is the scam explained.
This is not true. They lend at least 90 units on bank credit (bank liability) out of 10 dollars deposited.
Why do assets and liabilities match in their balance sheet? Because you promise to pay back the loan plus interest (promissory note) is an asset to the bank an it’s the original “value” backing the bank credit.
The bank steals this promissory note from you; and then hey sell it for cash if you demand cash instead of bank credit.
This is the scam explained.