Unemployed need not apply

[Toddsterpatriot]

What if the original bank sells the defaulted note?
Why don't you explain what happens?

It depends on what kind of note.

Why?

A mortgage note isn't handled the same way as an equipment note. Regulations.

A mortgage note isn't handled the same way as an equipment note. Regulations.

Does this have anything to do with the original money supply discussion?
Or are you just Googling something to try to sound knowledgeable?

Bloviating. Read the quoted thread.

You're an idiot. Read the thread yourself.

 

[Toddsterpatriot]

When banks fail, the money supply shrinks.
.

no it doesn't. a bank does not burn its money when it fails

Yes it does.

how??? If a bank loans me $one million for a business venture, the business fails, I don't pay back the money, the bank fails, but money supply stays the same and prices to not fall 34%.

If a bank loans me $one million for a business venture, the business fails, I don't pay back the money,

Correct, so what happens when the depositor comes looking for his $1 million?

What if the original bank sells the note?

What if the original bank sells the note?

Keep the defaulted note, sell the defaulted note, what is the impact on money supply for either scenario?

 

[danielpalos]

If you don't know how loans increase the money supply, just say so.

banks make loans all the time every day and it does not increase the money supply unless the Fed lets them make enough loans to increase the money supply. If loans always increased the money supply inflation would be 10,000% not 1.78%

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

 

[EdwardBaiamonte]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

 

[Toddsterpatriot]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

Well, you haven't shown you understand money supply either.........

 

[EdwardBaiamonte]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

Well, you haven't shown you understand money supply either.........

where is the issue exactly??

 

[Toddsterpatriot]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

Well, you haven't shown you understand money supply either.........

where is the issue exactly??

Your failure to understand how lending increases the money supply and default reduces the money supply.

 

[danielpalos]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

why no actual rebuttal? too much hard social work, lazy Capitalist.

 

[danielpalos]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

Well, you haven't shown you understand money supply either.........

where is the issue exactly??

Your failure to understand how lending increases the money supply and default reduces the money supply.

I don't disagree with either. There was less regulation of private money, before 1929.

 

[EdwardBaiamonte]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

Well, you haven't shown you understand money supply either.........

where is the issue exactly??

Your failure to understand how lending increases the money supply and default reduces the money supply.

are you saying lending increases the money supply even when the Fed is decreasing the money supply??

Are you saying that defaulting on a loan is different from me borrowing from you and not paying you back?? Are you saying the decreases money supply??

 

[Toddsterpatriot]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

Well, you haven't shown you understand money supply either.........

where is the issue exactly??

Your failure to understand how lending increases the money supply and default reduces the money supply.

are you saying lending increases the money supply even when the Fed is decreasing the money supply??

Are you saying that defaulting on a loan is different from me borrowing from you and not paying you back?? Are you saying the decreases money supply??

are you saying lending increases the money supply even when the Fed is decreasing the money supply??

I'm saying bank lending increases the money supply. You still haven't shown you understand how that works.

Are you saying that defaulting on a loan is different from me borrowing from you and not paying you back??

A bank loan increases the money supply and a default on that loan shrinks it.
You borrowing from me and not paying it back does neither.

 

[EdwardBaiamonte]

I'm saying bank lending increases the money supply.

how is that possible if the fed is decreasing the money supply?? Notice that you are unable to answer the question directly?

 

[EdwardBaiamonte]

A bank loan increases the money supply and a default on that loan shrinks it.
You borrowing from me and not paying it back does neither.

so then whats the difference between me not paying you back and me not paying a bank back???? Try to answer directly.

 

[Toddsterpatriot]

I'm saying bank lending increases the money supply.

how is that possible if the fed is decreasing the money supply?? Notice that you are unable to answer the question directly?

The Fed isn't decreasing the money supply.
Try to focus.
If a bank makes a loan, can you explain why that increases the money supply or not?

Leave the Fed out of it for now.

 

[Toddsterpatriot]

A bank loan increases the money supply and a default on that loan shrinks it.
You borrowing from me and not paying it back does neither.

so then whats the difference between me not paying you back and me not paying a bank back???? Try to answer directly.

Let's clear up your money supply confusion first, before we go off on an unrelated tangent.

 

[EdwardBaiamonte]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

 

[Toddsterpatriot]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

 

[EdwardBaiamonte]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

why not pretend its 2015 rather than make up fairy tale from long ago with no relevance to today???? Pretend??????? Why?????

 

[Toddsterpatriot]

Leave the Fed out of it for now.

its absurd to leave the Fed out when their entire job is to size the money supply!! while banks could care less about the money supply

Pretend it's 1912 and the Fed doesn't exist.
I put fifty $20 gold coins in a brand new bank. It's their only deposit.
They loan out forty five coins. Did this increase the money supply? Why? How?

why not pretend its 2015 rather than make up fairy tale from long ago with no relevance to today???? Pretend??????? Why?????

Because, pretending that something that isn't part of the discussion doesn't exist yet will make it easier to explain money supply to someone who clearly doesn't have a clue.

 

[danielpalos]

yes, loans increase the amount of money available unless secured by cash. economy of scale is micro when compared to the macro of scale economy.

gibberish from a liberal idiot!!

Well, you haven't shown you understand money supply either.........

where is the issue exactly??

Your failure to understand how lending increases the money supply and default reduces the money supply.

are you saying lending increases the money supply even when the Fed is decreasing the money supply??

Are you saying that defaulting on a loan is different from me borrowing from you and not paying you back?? Are you saying the decreases money supply??

yes; lending on a fractional reserve basis or "no reserve" basis "creates" new money.