Eric Egnet’s Post

Banks create money out of thin air through lending. In order for this to happen, additional value has to be created through production, new technologies, assets, etc. It can be beneficial, loans can be paid back and economy and finance are stable. In the absence of this, when money is created without associated real value, i.e. unproductive lending, then existing assets and land have to increase in value. This leads to asset bubbles, inequality, inflation, crashes in banking/finance sector with calls for public bail-outs, etc. Solution: ban credit for financial transactions, regulate money creation through lending with focus actual value creation. On top there needs to he a focus on sustainable value creation, remembering the risks to assets and economies caused by climate change, which lies in the trillions of dollars. #econgood #finance #economy #sustainability

Simple facts stated about #banks and #regulations. Hope the #BOD of #banks & #lawmakers rise up to opportunity and better manage this for #public. Also don’t miss to watch the end of this video, shocking reality about #London which most people don’t know.

When people say sarcastically that "banks don’t take deposits nor lend any money," they are typically expressing skepticism or criticism about the real or perceived roles and functions of banks, particularly in times of financial crisis or controversy surrounding banking practices. - Banks engaging in speculative activities Critics argue that modern banks may focus heavily on complex financial instruments and trading activities rather than traditional banking roles like taking deposits and providing loans. - Limited lending During economic downturns or in stringent regulatory environments, banks might reduce their lending activities, which can be frustrating for small businesses and individual customers who rely on bank loans. - Financialization The growth in the size and influence of the financial sector, often at the expense of other economic sectors, is another point of criticism. It implies that banks are more involved in generating profits through financial markets rather than supporting the real economy by facilitating deposits and loans. - Bailouts and financial crises Following the financial crises where banks were bailed out with public funds, some critics sarcastically remark that banks seem to function differently from their traditional roles, focusing on profit-making strategies that can risk the economic system.

this is a brilliant explanation about how banks actually work

Different words describing the fact that deposit takers print money, inflating house prices, which is non productive lending. This is why the Bank of England had introduced the LTI flow limit, and also why they in my view are unlikely to give in to pressure to remove the limit. Perenna funds mortgages through bonds issued to insurance companies and pension funds, not deposits, and thus does not boost house prices. Something many commentators wrongly believe. Using capital markets to fund mortgages stabilises the housing market and reduces systemic risk, existing money to finance existing assets. Time to exempt long term fixed rate mortgages from the LTI flow limit, and the market will improve! #housing #systemicstability #economics

The system is rigged right from the beginning of time — fractional reserve systems are dangerous to public funds. it has always been the sufferings of many that pay for the luxury of few! till we get a decentralized system running that's only when masses can have control over their fund....who use them, when they are used and how they are being used and at what cost — members of public would be the ones to determine all these! till then be reasonable when dealing with fractional reserve systems (Banks).

Worth the 10 minutes to watch. Changes your perspective about modern banking in the western world.

Very simple about banks...

When again ppl ask do we need new banks in SA… pls listen till the end.., British Finance, which is similar to how our current big banks operate, is identifying a need for smaller banks that finance differently and focus finance to help the economy for long term economic growth, because banks are really creators of currency!! Pls listen.. an education in banking.