11-25-2022 FRIDAY ! Live Chat
- Thread starter 7Critter
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My granddaughter always wants a ton of whip cream on a very small serving of whatever she's putting it on.
Stevedog
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Yeah, that's good ol, Reg D in action.
Regulation D covers the Reserve Requirements for how much money the banks need to keep on their balance sheets, also called Fractional Reserve Banking. The basic premise is this, if someone deposits $100K into a bank account that bank can loan out that money to someone else, that person can then deposit the money into another bank who also loans it out and on it goes. Without a Reserve Requirement, where a bank can loan out 100% of its deposits, that initial $100K becomes $1 Million after 9 loans, but only the initial deposit is "real" money as the rest was simply created through debt. And since banks won't stop at just 9 loans this has the potential to create unlimited sums of money. If that first person was to pull all their money out at once it could cause issues.
Now, if the Reserve Requirement was 50% then that $100K deposit would only allow a $50K loan, then $25K and so on. This slows down the new money creation to where the total is just under $200K after 9 loans instead of a million. When people talk about the government "printing more money" or "tightening the money supply" this regulation is one of the tools they use.
So under Reg D Banks are required to keep a certain percentage of deposits on their balance sheets which means putting restrictions on savings and money market accounts, which are only allowed 6 withdrawals per month. It's also why CDs have lock up periods, to ensure the deposit stays put for a while. Customers could get around some of this by having multiple savings accounts so changes had to be made, like limiting the number of saving accounts. The regulations were changed again during Covid to increase access to money and debt.
Having spent the over 2 decades as a banker I have discovered that around 90%-95% of the stuff people hate about their banks is because of federal regulations. Then people complain to their elected officials, who pass new laws to create more regulations, which causes banks to enact new policies that customers also hate, continuing the cycle.
Back in the mid 80s, I got over paid to the tune of nearly $600 for a travel voucher I submitted. Despite my best efforts, I couldn't convince the travel people to take the money back. (As my boss told me at the time, "There is no one more steadfast than an NCO with a regulation.") Knowing that at some point they would do an audit and discover their error, I decided to put the money in a separate bank account to show I didn't spend it and had set it aside for the inevitable.
My bank wouldn't let me open another regular savings account, but did allow me to open a Christmas account. The Christmas account had a provision you had to withdraw the money in December, so every Dec for seven years I dutifully withdraw the money. The following month I'd reopen another Christmas account and start the cycle again.
In 1991, I finally withdrew the money for the last time and used it to pay for part of our vacation the following spring.
garnetsilver
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GoneWestUtah
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Hi everyone.
Sick as a dog today. I had night sweats alternating with chills all night, woke up drenched. I am sure I picked this up on Tuesday at the grocery store, or Wednesday at the liquor store.
I don't want any Thanksgiving leftovers. I want a cheeseburger, lol.
Sick as a dog today. I had night sweats alternating with chills all night, woke up drenched. I am sure I picked this up on Tuesday at the grocery store, or Wednesday at the liquor store.
I don't want any Thanksgiving leftovers. I want a cheeseburger, lol.
garnetsilver
Truth Seeker
I woke up with a low grade fever yesterday, and I haven't even left the house. Hope you feel better!
Hiya !
Hope everybody had a nice day.
My brother and I finished Mom's Christmas lighting outside and I did the cords and got everything on a couple timers - no fuss.
The weather was in the '50s but if it was in the twenties I would strongly suggest converting to Judaism.
Hope everybody had a nice day.
My brother and I finished Mom's Christmas lighting outside and I did the cords and got everything on a couple timers - no fuss.
The weather was in the '50s but if it was in the twenties I would strongly suggest converting to Judaism.
