What do you use a bank for?

There are lot of uses of banks, first, the ssue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a cheque that the payee may bank or cash. Second, netting and settlement of payments – banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economise on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them. Third, credit intermediation – banks borrow and lend back-to-back on their own account as middle men. Forth, credit quality improvement – banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position. And last, maturity transformation – banks borrow more on demand debt and short term debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets). Meanwhile, New home sales have taken the first upward turn in months. New home sales and housing starts have both increased in the last month, and the evidence suggests that it isn't just the typical post winter bump. More people are responding to the drastic drop in prices, and getting personal loans to obtain a new home or first home. Economists are pointing to a rebound of demand since the supply has dramatically increased, and prices subsequently dropped to far more competitive levels. The forecast of gloom and doom hasn't subsided completely, but stock market and new home sales rebounds indicate that we might be almost out of the woods.

any more since they freely hand over any records asked for without a court order

I KILLED THE BANKS

I don't. I have not had any kind of a bank account in 18 years. It's a bit inconvenient, but I refuse to support an evil system. My advice to you is you better read the fine print when you sign up for an account. Unless things have changed since 18 years ago, the "contract" they make you sign states that you agree to abide by all the rules a edicts of the Federal Reserve. No Thanks!

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Dear Sirs,

One of my checks was returned marked "insufficient funds".

In view of current developments, does that refer to me or to you?

Yours Faithfully

WHG

Actually, where I live there is a shiny new bank branch placed at frequent intervals along most business streets. They seem to be vying for numbers with gas stations, convenience stores and fast food joints.

Remember when traveling that the banks almost always have much cleaner rest rooms than other places.

Government got involved...they're temporarily not accepting "new lender registrations or allow new commitments from existing lenders" until they're new registration system, which handles things for the "appropriate securities authorities", is in place.

http://www.prosper.com/help/topics/lender-quiet_period.aspx

That sucks.

That's an interesting idea. I think I've seen this site before, shortly after it first open up for business, but at the time I didn't need to borrow any money, nor did I have any money to lend out (heh, same as it is now).

lending without inflation = good

to a debate in massachusetts last night and spoke to a Rp candidate after the debate. She is doing the research on opening banks backed by metals. She wants to work real fast on this to get alot of people on board real fast. I will be having lunch with her soon and will post the details. Kill the other banks though.

How about target practice?

Listen to this message - perhaps it will inspire you..

Direct Deposit :-(

I closed my not-so Safety Deposit box this weekend.

and then I pay myself via check, cash it and buy gold and silver. I write off all of my expenses and pay not taxes.

If you're going to play the House, know the tricks.

bump

If the difference between a bank and the Treasury is that a bank charges interest, why have banks? Furthermore, why have interest?

I’ve argued on a few other posts that interest is essentially a virus that degenerates the value of currency

(I believe this interest-free principle was behind Lincoln’s Greenbacks also)

other people w/o interference of government.

The reason they don't is fear - fear of loss of their precious money.

Well, how have the banks worked for you?

People are assets!

not to blow anyone's bubble.