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Thread: Warka Mentioned

  1. #11
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    Quote Originally Posted by English Bob View Post
    HG

    JMHO

    It was the withdrawal of government funds.

    You have to understand "Fractional reserve banking"

    Not sure what ratio they are working to in the middle east and is prob different to western

    When you deposit 100 the bank can lend out 97 on the 100 as it is booked as an asset

    The 97 they lent goes on the books as an asset and they can then 97% of the 97 and so on and so on

    so basically if you forget the 3% 100 deposited creates 1000

    and a 100 loan creates 1000

    Nice work ha!

    You can see that the withdrawal of government funds through a rather large spanner in Warka's reserves

    HTH

    PS when you deposit money into a bank it is no longer yours............it's theirs to do what ever they wish.

    Western banks gamble the money in many ways stocks, fx markets and many other markets hence the melt down 2008

    And as for insurance.....................there is not enough in the pot to cover every unit.........so good luck if your bank goes belly up.

    The insurance was to stop folks from pulling their money out and making the situation worse.

    It's all bread and circus while the system tries to repair it's self............and it does not matter what way you look at it, the system in western economies is going to crash and make 2008 look like a walk in the park.

    HTH

    EB
    Customer deposits are a banks listed liability because they are owed to the customer. Bank assets are what a bank owns. CBI required reserve deposits have been 15% since 2010. Liabilities are offset by assets or the bank is deemed insolvent.
    Last edited by Screaming Eagle; 12-12-2014 at 02:34 PM.
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  2. #12
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    Join Date
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    Concur

    Quote Originally Posted by English Bob View Post
    HG

    JMHO

    It was the withdrawal of government funds.

    You have to understand "Fractional reserve banking"

    Not sure what ratio they are working to in the middle east and is prob different to western

    When you deposit 100 the bank can lend out 97 on the 100 as it is booked as an asset

    The 97 they lent goes on the books as an asset and they can then 97% of the 97 and so on and so on

    so basically if you forget the 3% 100 deposited creates 1000

    and a 100 loan creates 1000

    Nice work ha!

    You can see that the withdrawal of government funds through a rather large spanner in Warka's reserves

    HTH

    PS when you deposit money into a bank it is no longer yours............it's theirs to do what ever they wish.

    Western banks gamble the money in many ways stocks, fx markets and many other markets hence the melt down 2008

    And as for insurance.....................there is not enough in the pot to cover every unit.........so good luck if your bank goes belly up.

    The insurance was to stop folks from pulling their money out and making the situation worse.

    It's all bread and circus while the system tries to repair it's self............and it does not matter what way you look at it, the system in western economies is going to crash and make 2008 look like a walk in the park.

    HTH

    EB
    Got it. Agreed.
    ---------------------------------------------------------------
    "Sumerian News", that "the real value of the coin is the value of goods received by the individual and on the strength of the national economy"

  3. #13
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    Quote Originally Posted by Screaming Eagle View Post
    Customer deposits are a banks listed liability because they are owed to the customer. Bank assets are what a bank owns. CBI required reserve deposits have been 15% since 2010. Liabilities are offset by assets or the bank is deemed insolvent.
    Either way I think we lost out on this one. Oh well.
    ---------------------------------------------------------------
    "Sumerian News", that "the real value of the coin is the value of goods received by the individual and on the strength of the national economy"

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