Should, that’s the key word here. With Everything short of being robbed or destroyed, banks should be able to protect your assets and money. . . Should. -You know, giving them your stuff, you’d think they’d keep it safe or something.
A bank run is when clients of a bank try to withdraw their money due to uncertainty or fear. What ends up happening is that the bank’s liquidity runs dry and denies the withdrawal or they start running away with the cash because they are robber barons or *insert thing that actually happened here*. Point is, there’s not enough “liquid” cash to pay back the people that hold the I.O.U’s.
You see, The word ‘bank’ implies the idea that they are meant to ‘hold your money’. You know, like a riverbank. So what happens if you go to a place that holds your money, to find out that they don’t have your money?
Turns out, That’s not a fucking bank. (Or at least not a real bank based on common sense vernacular.) I mean, legally and via government circle-jerk ‘bank’ charters they might self-flagellate their ego and call themselves a bank. But they don’t bank nor do banking in a real storage sense with real security. (With of course the exception of banks with those lock boxes and safes that actually store and save your shit.)
Yea, that’s what we call a reverse lender, in which you loaned out your money for shit interest for a shit Not-A-Bank to gamble your money for returns that they pocket while passing you some scraps. It’s peer-to-peer lending, but your peer isn’t your peer and it’s a bank instead.
And when you try to collect, no surprise when that shit’s not there. It’s because they gambled with your money. It’s financial Cuckery in any other name.
Here’s a simple scenario to help paint the picture-
In A Perfect world, here’s what should happen;
Person: “Hey, I’d like to deposit some money”
A real Bank: “Sure thing, no problem. We’ll take a fee from storing your money”
Person: “sounds good to me, as long as it’s safe and it’s mine, then this is a good deal”
. . .
Person: “Hey, I’d like to withdraw some money”
A real Bank: “Sure thing, no problem.”
Essentially you’re paying for a storage service. That’s the traditional idea and values of banking. If they lose your money, they are obligated to the laws that be, to get you your shit back or equivalent based on whatever terms and conditions agreed upon therein.
Here’s what happens in this world;
Person: “Hey, I’d like to deposit some money”
Not a Bank: “Sure thing, no problem. We’ll pay you some interest for banking with us.”
Person: “sounds good to me, as long as my money isn’t sitting around -and having that money work for me, then this is a good deal”
Not a Bank: “Yea, we just use your capital as our capital in loans and other investment vehicles to generate a rate of return. If we win, you win too”
Person: “what happens if you lose?”
Not a Bank: “Well, we have all these safe guards in place, that’ll probably never happen. don’t worry, we’re a safe bet.”
. . .
So of course, the Person here gives money to the Not a Bank. This results in furthering a gambling Ponzi scheme of musical chairs in which the bank loans and speculatory gambles out the cash you entrusted them with.
Person: “Hey, I’d like to withdrawal my money”
Not a Bank: “Oh, sorry, we can’t . We currently aren’t allowing withdrawals”
(They might even make an excuse that your account was flagged for suspicious activity and froze it– or worse, the bank will literally call the cops on your ass because you’re black or something and you are trying to withdraw YOUR MONEY. Lmao, I can’t make this shit up, this is a Clown Ass world.)
Person: “But I gave you my money for safe keeping, aren’t you -like- suppose to store it?”
Not A Bank: “Yea, well, the economy is doing some things and the money is tied right now. Inflation. The Fed. Don’t Fight the FED. Interest rates. Yield. Treasury bonds. *Other Technical Vague financial linguistics to psychologically manipulate you into compliance*. . . And so, for the health of the economy and our bottom line we’re *Insert Vague excuse to not allow withdrawals* and so we’ve used your money to try and generate those returns you wanted. So, we are currently illiquid.”
Person: “So you’re having liquidity issues”
Not A Bank: “I wouldn’t say that. Just that we’re unable to meet your withdrawal demands”
Person: “because of Liquidity? Issues? Didn’t you say that you’re illiquid?”
Not A Bank: “Would you look at the time, office hours are up. I’m on break, try again later. If anything, Talk to the Manager. I don’t get paid enough for this and I suddenly have acute I-Forgot-What-You’re-Talking-about syndrome. It’s really severe.”
Person: “. . . “
Not A Bank: ” . . .”
Person: “So. . . What are we?”
Not A Bank: “Done . . . with this conversation”
And the worst part
The so called “Banks” aren’t the only one’s doing shit like this.
I’m talking about brokerages from Stonks to shitty Crypto exchanges.
Here’s a detour to dunk on Celsius
Here’s a recent example of a Shitty CEX forcing “HODL mode” on their users. Lmao, what a joke;
Because they ran into a snag of losing a lot of assets, so the Broker/CEX did the sarcastically reasonable thing and denied their users access to their service. And of course, calling them out about their blunder, leads to them blocking you on social media. Such a great PR move.
Lmao; TLDR of it all;
Shitty Marginated Brokerages whether in Stonks or Crypto are playing in the game of musical chairs of the charade that makes up the market. A grand illusion for the delusionated masses. So of course they’d try to one-up you on loan and interest rates. They want to win too.
The rather semi-scrupulous thing that Marginated Brokers do is that they have Prime Brokers like Big Banks back up their balance sheets. Well, atleast the reputable brokers do. Lmao. The less reputable ones just leave you holding the bag -or HODLing the bag.
So you end up with no one having any real cash, and most of the value being hyper inflated from loaning and margin and speculatory interest rates.
If we were to compare the two,
Brokerages vs. Banks
A Bank can use fractional reserve to generate more assets
Just in the very same manner that a loan officer can generate a loan and use their interest rates as an asset. In this case, a Brokerage can create loans via margin accounts and their terms and conditions.
So Banks and Loan creators are sometimes one in the same. Resulting in creating wealth generation through an Alchemic process of using future debt to further finance the wealth now through conversion values of an amortization schedule to a speculatory figure(d)-out value of right-meow.
All of this to be chopped up and traded and speculatively gambled on like them Mortgage Backed Securities and CDOs, you know, like 2008 but this time with more debt than just housing.
What, you think we learn from our mistakes? Naww, we just learn how to out-stupid our safe-guard-band-aid fixes. The natural law of Darwinism states;
‘what doesn’t kill you, will make you stupiderer. Especially the dumb shit.’
This system sucks and people are counting their chickens before they hatch. Resulting in Gambling degeneracy from every Loan Officer and Speculative Quant gambling your State’s pension funds.
Now you know why Old Grand Pa and Grand Ma from the Great Depression times would hide their money under their mattress.
It’s because when they trusted the security and safety of the banks, they got robbed by the very same banks with worse security and no money.
In Conclusion, Bank is not a bank, don’t you dare put that word in your whore mouth to describe some prostitute institute that lies about pooling monies for the purposes of storage. We should instead call Banks something else, like a Reverse-Loan-Officer or a Pay-Day Loan office, or something demeaning because -Fuck Banksters-.
Honestly, Modern Banking as a technology is pretty outdated. Especially if we were to really be a cashless society. You’d have to speculate the origin and evolution of banking and tangible cash to understand the implication of what I’m implying. Basically, we don’t need banks anymore. But that requires the government to not be stupid and also the people to not be stupid. Which, I mean, the Government is made of people. So I doubt it- and I wouldn’t bet on that any time soon.
I mean -what- are you gonna count your chickens before they hatch too?
Yea, “Bank Runs” shouldn’t be a thing and Banks aren’t really Banks.
And yet Bank Runs still happen today and Banks are called Banks.
And you got the FDIC shit-ass from the government to back up the banks, in which the government is backed up by a central bank. The Central Bank who is owned in part by a bunch of all the other member-banks and some private record holders because -reasons-. So who the fuck is backing up the Central bank if it’s not just a circle jerk of banks and government backing eachother up?
So your telling me, guy number 1 is backing up guy number 2 which guy number 2 is backed by guy number 3, and guy number 3 is just guy number 1 in disguise? So we’re just tying ships waiting for a storm, eh?
Yea, that’s a good laugh.
Ha, there’s a scam a dozen in these streets.
Every breath you take, another scam is in the make.
The Crypto-Celsius being a rather recent example of -shit- and -bank-runs-, so learn from it or something.
*Not Valid Financial, Legal, Life, or Any Advice
This is an overtly simplified critique at the idea of ownership and property rights when it comes to a social security known as a State’s Currency. The complexities of the actual discussion would devolve into individualism, sovereignty, and a discussion on property rights; which that discussion would devolve into argumentum about God, God-state, and the idea of consciousness and it’s associated Substrates.
What I mean to say simply, is- Technically, the real Banks and the Fake Banks can both lose your shit.
It’s just, people think that the Fake Banks could actually store value while extracting it, which is a falsehood. A Scam if you will. Mainly because the Fake Banks don’t deliver you that value extracted from their profit generation, the Fake banks give you some marginalized rate of return that doesn’t outpace inflation and make you think that the lollipop you’re sucking on doesn’t have lead in it. You’re not the client at a Fake Bank. You’re the property, the (cash) cow, the cattle, the sheep, the slave.
If you truly were the customer, then how come banks -that you made promises and liens with- can sell and trade your loan? Your promissory note? Your Promise?
Your Mortgage can be sold a dime a dozen by the people that are owed it. Yet those are not that people that you made contracts with? Doesn’t that seem a bit fucked?
Even “customer” accounts can be transferred. Who is the customer, who is the client, look in the mirror and ask yourself how ‘banking is profitable’ and what the ‘risks of banking’ is. I’ll give you a hint, don’t look to common sense, instead look to what the current established practices are.
If you don’t think there’s an issue with all of that, then you need to brush up on the origin of contract law and social agreements. Because having that practice be ‘industry standard’ is disgusting, a perversion of truth.
There used to be a time when Banks stored your shit, and there was a golden period between them storing your shit, and them degenerately gambling your shit, that the banks actually offered real returns. That was a simpler time, when the banks actually gave you more than half a percent interest a year.
If only we could get those less-degenerate rates of returns from a pre-rampant amoral financial cuckery of financial institutions.
You know, back when the banks asked to gamble your money instead of assuming that it was theirs.
Before the Glass Steagall thing and rampant gambling and financial debauchery of monetary policy coupled with foreign wars for pseudo interests.
Such simpler times for money.