- Mar 16, 2002
- 21,719
- 13,436
- AFL Club
- Richmond
- Other Teams
- Richmond
Long term I don’t ....but we all do love seeing our property values rise....
Society/Culture Currency Circulation
- Thread starter Run n Spread
- Start date
- Tagged users None
- Oct 30, 2010
- 5,547
- 4,365
- AFL Club
- Hawthorn
voila. 75% say nein.
https://www.bk.admin.ch/ch/d/pore/va/20180610/det618.html
australia's (for example) property price problem is only an outcome of fractional lending in the sense that more people are able to borrow money (thus increasing demand). if you remove fractional lending then sure, prices likely reduce over time because there's less demand but you completely ignore the other implication which is that far fewer people will now be able to borrow. with far fewer loans available the cost of borrowing will rise, and banks will take less risks. now, most people will say that's a good thing- a bank taking less risk? woohoo! they don't understand that what this entails in a practical sense is that now only the wealthy can get credit.
you should post some facts re countries that have pursued full-reserve banking previously and explain why/how their poor capital formation and growth was offset by all the benefits offered by full-reserve finances.
https://www.bk.admin.ch/ch/d/pore/va/20180610/det618.html
australia's (for example) property price problem is only an outcome of fractional lending in the sense that more people are able to borrow money (thus increasing demand). if you remove fractional lending then sure, prices likely reduce over time because there's less demand but you completely ignore the other implication which is that far fewer people will now be able to borrow. with far fewer loans available the cost of borrowing will rise, and banks will take less risks. now, most people will say that's a good thing- a bank taking less risk? woohoo! they don't understand that what this entails in a practical sense is that now only the wealthy can get credit.
you should post some facts re countries that have pursued full-reserve banking previously and explain why/how their poor capital formation and growth was offset by all the benefits offered by full-reserve finances.
