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It seems an odd problem to have, this “too much cash” thing. I don’t know that most of us can relate. But it seems that in times of economic insecurity, those who used to invest in stocks are simply holding their money in banks, and now bankers are inundated with money. So what’s the solution? Charge people to deposit. Or, at least some of the people, at some banks anyway:
Originally posted by Skewed
Source
It seems an odd problem to have, this “too much cash” thing. I don’t know that most of us can relate. But it seems that in times of economic insecurity, those who used to invest in stocks are simply holding their money in banks, and now bankers are inundated with money. So what’s the solution? Charge people to deposit. Or, at least some of the people, at some banks anyway:
Originally posted by Agarta
So, correct me if I am wrong here or if the practice has changed but, When a person puts money into a bank the bank keeps a record of the deposit and 7% and invests the rest for its financial gain. More money being deposited means more money for investments. Now if the investment is sound the bank makes money. If the investment is not the bank looses money. The loss of money in these investments is where the bail outs come in. But, the bail outs are being used to loan out more money in order to draw in more interest from the debtor instead.
So , now they are charging to deposit which makes more money for the banks. Is this to cover the bad investments? Is this to insure larger investments? Is this being used to cover the bailouts? Is this simply put into the pockets of the bankers and their shareholders?