In EU bank depositors are lenders/ junior creditors and....

Discussion in 'Wall St. News' started by dealmaker, Jul 19, 2016.

  1. dealmaker

    dealmaker




    listen minute 21:24 on-wards...
     
  2. bank depositors are lenders to banks everywhere, not just the EU.
     
    Sig and DallasCowboysFan like this.
  3. dealmaker

    dealmaker

    While that is true in US you are protected up-to $250k thanks to FDIC...
     
  4. Yes, while arnd here you have some ineffective EEA rules about depositor protection, but the idiots can come up with the framework for a banking union, still...
     
    dealmaker likes this.
  5. Yeah, the guy did not say anything revolutionary.
    If you have taken a class in Economics or Money, Banking and Public Policy the video would have been old news.

    I don't recall exactly but I think that 10 percent of savings is retained and 20 percent of checking deposits are retained, the rest is loaned out. That's how they make money, it's called fractional lending.

    And when he talked about bail-ins.......and creditors.......it's always been bond holders, preferred stock holders, common stock holders........liens are in there somewhere.......it's up to the Judge.

    If the guest and the show's host had watched It's A Wonderful Life, they would have known this.


    41:15





    https://en.wikipedia.org/wiki/Fractional-reserve_banking


    http://www.forbes.com/sites/johntam...g-and-the-money-multiplier-myth/#6a15fc286704