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Thread: Clunkers' Effect on Pollution? A Blip

  1. #31
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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by Smoke[MaxX] View Post
    Are you really going there? Banks fail (for the most part) because of their own stupid "investments" or risks that they take. If a bank fails, it's the banks fault. If the economy depends on people spending money (which it does) then it's the consumers' faults.
    Do these "stupid" banks only invest their own money??

    • "The America Republic will endure until the day Congress discovers that it can bribe the public with the public's money." -- Alexis de Tocqueville





  2. #32
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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by Smoke[MaxX] View Post
    Why do you molest children? And no, I don't mean it as a personal attack. I mean it as a question that I can state without proof, as you just did. Why don't you back up your argument instead of just saying I'm wrong. Perhaps you're wrong about everything in life. Until proof is shown either way, it's all speculation and heresay.
    Very simple. Because rich people's, or poor people's, money doesn't sit in banks. The money you put in banks is loaned to people to buy cars, houses, furniture, or whatever.

    Banks wouldn't make any money if they left it sitting in a vault would they?

    If the rich people don't put money in the banks, the banks have no money to loan to you.

    • "The America Republic will endure until the day Congress discovers that it can bribe the public with the public's money." -- Alexis de Tocqueville





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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by Gill View Post
    Do these "stupid" banks only invest their own money??
    So you're saying that because rich people put their money in the bank, the bank invested their money in stupid endeavors, causing them to fail?

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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by Gill View Post
    Very simple. Because rich people's, or poor people's, money doesn't sit in banks. The money you put in banks is loaned to people to buy cars, houses, furniture, or whatever.

    Banks wouldn't make any money if they left it sitting in a vault would they?

    If the rich people don't put money in the banks, the banks have no money to loan to you.
    I think you're missing the point. The banks would still have money if it was flowing through the economy. If more people had more money (through cash flow) then they'd need to loan less. At the same time, banks would be making money through their loans and the larger number of people with a surplus of money would be banking that extra money. Just because there's cash flow doesn't mean money DOESN'T sit in banks.

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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by Gill View Post
    Very simple. Because rich people's, or poor people's, money doesn't sit in banks. The money you put in banks is loaned to people to buy cars, houses, furniture, or whatever.

    Banks wouldn't make any money if they left it sitting in a vault would they?

    If the rich people don't put money in the banks, the banks have no money to loan to you.
    This is what I was trying to get him to realize for himself by asking all of my questions.

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "True law is right reason in agreement with nature . . . Whoever is disobedient is fleeing from himself and denying his human nature [and] will suffer the worst penalties . . ." - Cicero

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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by Smoke[MaxX] View Post
    I think you're missing the point. The banks would still have money if it was flowing through the economy. If more people had more money (through cash flow) then they'd need to loan less. At the same time, banks would be making money through their loans and the larger number of people with a surplus of money would be banking that extra money. Just because there's cash flow doesn't mean money DOESN'T sit in banks.
    If everyone is spending their money, then what money do banks have to loan out?

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "True law is right reason in agreement with nature . . . Whoever is disobedient is fleeing from himself and denying his human nature [and] will suffer the worst penalties . . ." - Cicero

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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by Smoke[MaxX] View Post
    So you're saying that because rich people put their money in the bank, the bank invested their money in stupid endeavors, causing them to fail?
    What he's trying to say is that the physical backing for loans is the money that people put into banks.

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "True law is right reason in agreement with nature . . . Whoever is disobedient is fleeing from himself and denying his human nature [and] will suffer the worst penalties . . ." - Cicero

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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by phattonez View Post
    If everyone is spending their money, then what money do banks have to loan out?
    I addressed this already. People spending their money is instantaneous. You think people won't put money in the bank just because they're spending? I'm not representative of the population, but I always bank my money and pay using a debit card- and I'm only a broke college student. I don't think this is unusual especially considering the amount of online shopping many people do.

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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by phattonez View Post
    What he's trying to say is that the physical backing for loans is the money that people put into banks.
    Exactly. He's trying to draw a parallel between rich people leaving money in the bank and banks failing. Since banks basically invest other people's money (more or less), they wouldn't have large amount of money to play the risky game if people didn't put so much money into the bank.

    You know, it's funny that I've been attacked for knowing nothing about how the economy works when nothing's been said that compromises my position.

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    Re: Clunkers' Effect on Pollution? A Blip

    Quote Originally Posted by Smoke[MaxX] View Post
    Exactly. He's trying to draw a parallel between rich people leaving money in the bank and banks failing. Since banks basically invest other people's money (more or less), they wouldn't have large amount of money to play the risky game if people didn't put so much money into the bank.

    You know, it's funny that I've been attacked for knowing nothing about how the economy works when nothing's been said that compromises my position.
    You're jumping to a conclusion here that just isn't true. Answer some more questions for me.

    Does a bank only loan out the money that it has in reserve? Well no, because we know that banks fail, and this happens when people cannot get all of the money back that they had given to the bank. So then banks fail, and it is because they loaned out more money than they had. So tell me, when banks are loaning out money that they do not have, is the act of investing really responsible for those bad loans?

    Who shall ascend the hill of the Lord? And who shall stand in his holy place? He who has clean hands and a pure heart, who does not lift up his soul to what is false, and does not swear deceitfully. Psalm 24
    "True law is right reason in agreement with nature . . . Whoever is disobedient is fleeing from himself and denying his human nature [and] will suffer the worst penalties . . ." - Cicero

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