Topic: How is it possible to say there is no money in the bank - page 6. (Read 1379 times)

Haha. Bury your money and you’d end up regretting why you didn’t put it in the bank. If people start putting their money in their houses as well, robbery will increase and you’d be scared that someone could come one day and take it all considering you don’t have the security these banks have. But I understand your say. The bank indeed is using the money and that’s how they may their money. If everyone were to go and ask for their money back, the bank can never be able to provide it unless they have to borrow from another bank. But cryptocurrency has come to our rescue. Hasn’t it?

It takes a lot of things before a bank has a financial crisis or to take file of their bankruptcy could be no more customer, takes a lot of debts, etc. But of course, before this happens most of them had a good marketing strategy to get back on track, most countries have different kinds of banks there are some banks for local people, banks for the company and of course banks for the for the whole country, there's a lot of circulation happens right here if the banks allowing to have a loan, in different aspect, if they payee cant have pay the debt there's a law regulated that the government or the bank itself can get the amount into other form like land, investment, business and etc, I'm not quite sure if its part of the small clams regulations. If the country doesn't have a money on their banks that's the time the country seek for help into other country to lend of course those debts have equivalent value.

When the banks say they don't have money, it means they have exceeded the amount of money they can give out for that period to normal people..the banks aren't making profits from you and me so they're not interested in doing business with us. The banks are interested in those people taking loans in huge quality to fund their business and when paying back they pay with interest then the banks makes profits during that repeatedly. They might tell you they don't have money but there are people the money are been saved for.

Banks can't also print out money without control or your country would be in the same disaster Venezuela is facing. The government didn't sign new money, they had a budget read for the year and some of those money they'll use to full fill the budgets aren't available. They have to raise funds for the budget and since your country don't have anything reliable that's bring revenue to the country, they have to rely on borrowing.

If your country has something that can bring revenue to take care of the budget for the year and they're not doing so instead going to borrow then corruption is what is happening in your country. Although banks can print money anytime they won't do that or they'll be contributing to the inflation affecting fiats currency.

The banks are overleveraging their position as well. Assume that they have 100 billion in their system, given by the people who are requesting savings interest, right? If they do give all 100, then how people would be able to give people their profit? So they give some of that, but they need to pay all of that, and if the interest is great, then the loan they are giving to people have to be a big higher too, to make that.

So, while giving away 80 billion of their 100 billion, they need to make more with the 80 billion by loaning it out than the 100 billion they are paying interest for. Sometimes, like now, the difference between savings interest and loan interest are not that big, so they give even bigger chunk of their money, and that means they have no money left.

If you compare banks to river, they only distribute water, not store it. Likewise for those of you who intend to store cash (limited supply), it only converts it in digital form into a few bytes of storage, well their storage isn't limited to that digital number. Meanwhile, your cash is used for liquidity in their business.
That's why, they (and protected by the government) limit cash withdrawals per day and can change at any time to balance with their liquidity, if they fail then what will happen is a liquidity crisis like your local bank.

The way you look at it is wrong. The bank is not an overflowing water source. Imagine it more like a small pond that someone owns. It dried up sometimes and gets filled if there's ever rain. Now people living around the pond use that water for their farming and other stuff. They pay something more valuable in return when they are harvesting. If there's no rain, people will use up all the water making it dry leaving that pond with no water. But the owner will get a valuable return in the end no matter what.

This is what also happens with the banking system. They are not lending out their own money. They are lending out money that people deposit in that bank. And they lend out all of them immediately. Because if they keep it in their possession, they won't be able to make profits. In the end, when everyone at once asks for a withdrawal or makes a huge withdrawal, they are unable to give it back to them. That's how it works.

No I don't know what happens to our money in the bank after we deposit it but they have a reason on why they can't release our money by the time we demand it from them. I know it's annoying and it's a turn-off to that bank, but maybe our views to other or all of the banks are going to be the same with them. Not all knows about cryptos and not all who knows it will really care at all if it's decentralized or not.

Most decentralized cryptos are volatile so I won't say that they are good for saving money. For investing maybe. Centralized platforms can be secure in a way that hackers will have a hard time penetrating them but maybe not really secure, as some can use or ran away with our money.

The central bank is to be blamed. They have sufficient experts to study the sum of cash needed in the entire nation. They ought to print adequate money before deciding to ban the old notes. Sometimes it becomes common to question why a simple government task was not done properly.

How about the possibility of banks wanting to collect as many fees as possible through online transfers? Two or three pennies as charges will transform into millions when the larger part of your nation is compelled to utilize online transfers. Even in highly advanced nations, this is a serious issue because using online transfers requires fast internet, which is not always available outside of urban areas.

Some people still don't realize that the money from bank customers will be used by the bank to develop their own business in many ways and there are still many ordinary people who think that keeping money in the bank is the safest thing in their opinion. So they don't want to look for other alternatives in order to find out which other sectors are safest to save the money they collect through their own work.

In fact, currently there are quite a lot of sectors that can be used to store money safely without having to link ourselves to the bank except for transfer service bridges only. Currently, I often use the alternative of saving gold when I already have money to avoid the bank, because saving gold at this time is not bad other than keeping Bitcoin as usual.

As much as you're using the banks and show you're having total confidence in them without having an alternative, they will always comes with a surprise for you over the account you have with them because you're only saving your money with them in other to use for their own business and nothing more, the moment people realized that money in the bank should also have some incentives it would have been generating for us then they will realize that these banks are just using us to make business with our money, yet have the gods of denying us right to it.

The first quarter of last year was economically a very difficult time in my country, the central bank of Nigeria, redesigned naira, our local currency, problem was that the new designed note wasn't sufficient to go round and the old notes were banned. People suffered because of the shortage of cash, you couldn't get from the banks and people really freaked out, we were left with only online transfers option. So in December, last year people began to hurd cash in their homes out of fear of what they faced in early last year. So when you went to banks to withdraw cash, they'd give you like half of the money that you need, if you complain they'd tell you that they don't have cash, it was really very inconvenient.

Most of the banks in our country are saying that their bank reserve fund is exhausted and they are facing dollar crisis. Depletion of bank reserve fund means bank coffers are empty and all the money is lying outside them which is very worrying especially for bank customers. Before the bank goes bankrupt, first they say that they have run out of reserve funds and that they have a dollar crisis, at which point they suddenly declare that their bank is insolvent due to over-indebtedness. If you are a customer of that bank when the bank goes bankrupt and you don't have any debt but if you have a large amount of money deposited then the bank will take the loan then you have already lost your deposited money and then you have to pay the bank loan again. Before a full-blown financial crisis hits, we need to decide how safe it is for us to keep money in the bank right now.

I haven't experience this too, But I do have this kind of experience wherein all my deposited money in my debit account has been gone due to their system issue or i dont know the real reason is because they didn't explained it to me clearly, it also took a few days before they returned the lost money to my account. I reported the incident right after I checked my online bank account, so it would also a big help if we have a weekly checking of our accounts set up, especially if you have online bank applications for easy access. due to trauma and panic, I withdrew all my money from that bank and transferred it to other banks that has a good system security.

In my lifetime, I haven't experience this kind of phenomena where I can't withdraw my money from the bank because they don't have enough money. It might be only happened to a country that experience hyperinflation and the economy is collapsing so people are withdrawing huge sum amount of money at once. It is not a secret that Bank loan our money, so other reason outside the hyperinflation is might be that our money is being loaned to their loaner.

Banks have been betraying the trust of their customers for hundreds of years all over the world and yet people allow them to get away with it, and even if there are many investors that are here just because they want to make a lot of money, I can assure you there are many of us which are so disappointed with the banks that we have decided to take things into our own hands and began to do what we could to protect our wealth, and bitcoin is a very good step in that direction.

​Everyone knows that not having money in the bank doesn’t mean an account is empty, but because there is no money in a bank account, you don’t get the money when you need it. This is the big problem, if you desperately need money and you don’t have that time, what is your response? Money is kept in banks so that you can easily withdraw money when you need it, if you don’t have money when you need it then what is the responsibility of these banks.

If cash is not available in the bank then how can the cash be available in the ATM machines, because the ATM machine is also associated with the bank. It is not difficult to pay or buy something online, but not everywhere you can pay online, many places you need cash and then you face problems.

Am very sure that it is because of the way the bank system has been deficient that made the decentralized network initiative take shape.
If I have cash these days, I consider saving or accumulating in an offline crypto wallet very healthy and a better choice than using the bank to save, because I can have access to my wallet from anywhere at anytime, not like the banks that may be closed for the day or have issues with dispensing cash needed for immediate relief.

The banks do invest in other businesses and when there's shortage of cash, the bank reserve is supposed to Carter for this deficiency but in many cases it isn't so. I think the government and bank ruling bodies know what's involved and many of the times they only give attendance to rich men who are well known and have a lot of investment collateral to claim incase they fail to redeem their end part of the bargain.

That is why a wise man said, "Understanding something is also part of learning." A bank telling you that there is no money doesn’t mean your money is gone; they are just out of cash. which might occur as the result of higher demand of cash from companies and other customers and the restriction of the daily amount to withdraw from your own account happens just to control inflation in the country. That is why such a law has been put in place, but solutions are always there. Even if there is no cash, you can still cope because you have an ATM and you can have access to any ATM machine and make your withdrawals, and at the same time you can still transfer the money to whomever you want to pay or purchase something from, which I see as the most simple way to have access to your money without any stress.

you should know that bank didnt 100% keep the money in form of money they also need to move around money, usually the money available for withdrawal are just measly 20% i think if im not mistaken and thats enough for people who want to withdraw their money the rest of money are being invested through various means that are safe enough like basically giving loan to people, they are literally growing the money that they got from people through interests and get that interest as a profit.
thats why sometime bank give special treatment for those saving up tons of money in the bank because it will increase the money that they can invest around.
thats just how bank work and its no new thing.

What they mean to say is, they don't have liquid funds to disburse to their account holders if they are looking to get a loan or a withdrawal. Most of these guys put their money straight into investments after people have deposited through their accounts. That's how they make money: we entrust them to hold the funds for us and in turn, they collect interest from the money we deposit through investments, loans, or other stuff.

They can also go bust if their investments proved to be failures. It has happened a lot of times before and could even happen now. What to do afterwards? Limit the losses, sell what has to be sold, and give back their depositors their money (if there's anything left, lol).