| Subject: | Re: [socialcredit] Reply to Jessop addendum | | Date: | Wednesday, May 4, 2005 12:53:19 (+0100) | | From: | Timothy Carpenter <timbeau_hk @........uk>
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Re: [socialcredit] Reply to Jessop addendum
Yes, John,
Banks have a risk and securitised portfolio which they put to their reserve, not just vault cash. Land and securities are typical.
Brgds
Tim
On 3/5/05 9:22 pm, "John G Rawson" <johngrawson@hotmail.com> wrote:
ANOTHER asset? John R.
>From: Timothy Carpenter <timbeau_hk@yahoo.co.uk> >Reply-To: socialcredit@elistas.com >To: <socialcredit@elistas.com> >Subject: Re: [socialcredit] Reply to Jessop addendum >Date: Tue, 03 May 2005 08:13:04 +0100 > >Dear John, > >Which is fine, because I never said that. > >It could be another asset that permits the bank to lend, depending on the >conditions in its banking license. In the UK and in many countries a bank >uses a risk and liquidity rated range of assets, higher risk and/or >liquidity means lower lending ratios against that asset. > >Tim > >On 2/5/05 10:33 pm, "John G Rawson" <johngrawson@hotmail.com> wrote: > > > To "butt in", deposits have nothing to do with "allowing loans". Deposits are > > bank liabilities. > > > > John R. > >> >From: Timothy Carpenter <timbeau_hk@yahoo.co.uk> >Reply-To: > >> socialcredit@elistas.com >To: <socialcredit@elistas.com> >Subject: Re: > >> [socialcredit] Reply to Jessop addendum >Date: Mon, 02 May 2005 21:19:25 > >> +0100 > >Dear Joe, > >My understanding is that, using your example, the $1000 > >> deposit would permit >the bank, within its remit and licence, to issue loans > >> of $5000 in total and >charge 5% on it. The depositor would see 2.5% of > >> $1000. That $5000 does not >come from deposits, but is created on paper. > >> Rarely are loans withdrawn as >legal tender so the issue of vault cash seldom > >> comes into it, hence the >reserve ratios! > >These days loans are weighted by > >> risk, not just a %age, so a loan on a house >is secured and allows more > >> lending, while a loan on a car is not really >(could crash but will > >> depreciate) and has higher risk. > >Tim > >On 2/5/05 4:31 pm, "Joe Thomson" > >> <thomsonhiyu@shaw.ca> wrote: > > > I should add, before anyone gets the > >> impression that my previous reply to > > Jessop is concentrating on the > >> sideline of 'interest', that the important > > point to be taken is that > >> LOANS CREATE DEPOSITS. > > > > Joe > > > >> --------------------------------------------------------------------- > > > >> You're subscribed to this list with the email timbeau_hk@yahoo.co.uk > > To > >> unsubscribe, send a message to > > socialcredit-unsubscribe@elistas.com > > > >> For more information, visit http://www.eListas.com/list/socialcredit > > > > > >> > > >--------------------------------------------------------------------- > >> >You're subscribed to this list with the email johngrawson@hotmail.com >To > >> unsubscribe, send a message to >socialcredit-unsubscribe@elistas.com >For > >> more information, visit http://www.eListas.com/list/socialcredit > > > > > > Discover fun and games at XtraMSN Kids! > > <http://g.msn.com/8HMAENNZ/2731??PS=47575> > > > > --------------------------------------------------------------------- > > You're subscribed to this list with the email timbeau_hk@yahoo.co.uk > > To unsubscribe, send a message to > > socialcredit-unsubscribe@elistas.com > > For more information, visit http://www.eListas.com/list/socialcredit > > > > > > >--------------------------------------------------------------------- >You're subscribed to this list with the email johngrawson@hotmail.com >To unsubscribe, send a message to >socialcredit-unsubscribe@elistas.com >For more information, visit http://www.eListas.com/list/socialcredit
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