The Creation of the Federal Reserve System (Part 3)

Saving account at banks is an INVESTMENT on bank.

Saving account at TreasuryDirect is an INVESTMENT on government saving bonds.

Both are investments.

The fact that you're self-proclaimed Modern Monetary Theorist yet you fail miserably at understanding what saving account is, and that amuses me.

Like I said, you have zero credibility since you joined this thread, now you have less than zero credibility. Please refrain from talking about banking system, what you have demonstrated so far showing you have absolute zero knowledge about how banking system works.

Take my advice, go back to your school and demand a refund immediately, you're getting a complete garbage education and it's waste of money.

 

Alright guys, tomorrow I'm going to the bank to invest in a savings account... hahahahahahah

 

I just taught you one the most basic form of investment and now you're paying me with your trolling? It's really sad.

 

Some people obviously do not understand the difference between investing and saving. I thought people on this site graduated middle school?

 

It would be you, it's crystal clear.

 

I am simply debunking the random disinformation you are posting in this thread.

It's already been irrefutably proven to you with sources that savings accounts are considered investments.

 

A savings account is interest-bearing.

http://en.wikipedia.org/wiki/Investment

A financial instrument that is insured by the pledge of assets from a third party, such as a deposit in a financial institution insured by a government agency may be considered an investment.

Econ 101. Actually below Econ 101. I think we learned this in pre-school. However:

 

I can not believe you guys are so uneducated that you think savings accounts are investments. In all my years of schooling I have never heard such nonsense. When I go to the bank to put my money in a savings account I am not buying anything, when I use my money in my savings account I am not selling anything. It's simply what we normal people call SAVINGS.

http://www.extension.iastate.edu/news/2007/jun/061701.htm

 

You're putting money into a Business that will use the money for it's own purposes... and it will gradually give you money over time. Sounds like an investment...

 

A savings account is MONEY. When you invest in stocks you can not go to the grocery store and purchase food with your stocks. However, you can go there and use your savings account. Savings accounts are exactly what the name says, they are savings. No where in the world of economics does anyone consider savings accounts to be investments.

 

"Saving and investing are two unique concepts, and it's important to understand the difference between them and the need for each. Saving, by definition, involves the protection and preservation of money from loss. Investing, on the other hand, means to make a long-term commitment of putting money away and letting it grow. This involves risk, such as the occasional and inevitable downturns in the market; however, over the long-term (five years or more) those dips are expected to smooth out into an overall upward growth pattern."

http://www.finweb.com/financial-planning/saving-vs-investing.html

 

Is this another rant about how Economics is only what you think Economics is?

 

What you need to understand is that it's both... the bank expects to hold onto your money for years so they themselves can use your cash to give out loans. It's a Business... they offer to protect people's finances while also in return giving them money over time for using their cash as credit.

 

The company I currently work for, WM Brode Construction, use to (way back in the 1930's Depression) make fiat currency notes called "Brode dollars". Brode (the man who started the company) would give these dollars to impoverished people (which, was most people). Local businesses accepted them.

Fiat currency doesn't have to be monopolized by anyone, although it can in some cases help the "majority" economically.

 

You are displaying a 2nd grade understanding of the banking system. Banks do not lend your cash or your deposits. If I wanted to "invest" in a bank, I would invest in their equity by investing in their stock, I wouldn't invest in a savings account. I would save my money by putting it in a savings account so I can use it in an emergency or when I need it, but I wouldn't invest in a savings account.

There is a major difference between investing and savings. This is honestly the first time in my life I have ever heard anyone call a savings account an investment. And I can see it stems from a complete lack of knowledge of the banking system.

And banks don't "expect" you to do anything. They don't care what you do with your savings account money.

 

I follow economic definitions that have been taught for centuries. For some reason you guys like to make up whatever definition you want just for the sake of argument. The difference between saving and investing is really really simple stuff.

 

Here is the definition from the SEC. Anyone who believes savings accounts are investments should not talk about economics or anything dealing with the monetary system the rest of their lives.

http://www.sec.gov/rss/ask_investor_ed/saveinvest.htm

Please apologize Dr. Righteous. Thank you!

 

The explain to me Mr. Educated, why do your and my checking/saving have to be insured by FDIC, where is the risks associate with it when banks simply siting on the funds?

And if banks simply sitting on on the deposits, would we call it "FULL RESERVE" banking?

If you can, please drop your textbook bull(*)(*)(*)(*), no one cares about what you heard, read, or told. Stop spamming the forum with your garbage reading materials.

 

Banks use the money in your saving account to purchase US Savings Bonds and flip them for profits on daily basic, bank and you will share that profit, meaning your saving account is your investment with banks. The more you post, the more disconnect from reality you show, that's what most textbooks school boys do, they read one or two garbage article then they quickly assume that how real world works.

 

Where do you think banks get the money to pay interest on your savings?

Does your money in saving account just grow interest on itself by sitting in the banks vault?

 

Very much. The kid has been proven a clueless, misinformed, and misled when it comes to economics and banking, he barely knows how the system works, he is desperate grasping on anything to justify his crooked theory, if he has to make lies after lies after lies, then so be it.

Do you see it odd that no ones on this board sides with his fantasy fallacies theories?

 

Your schooling must have been terrible, because even wikipedia knows that savings accounts can be considered investments.

 

Already disproven many times.

 

Saving money and putting money in savings accounts are two COMPLETELY different things. Savings accounts are both saving and investments. Anybody with a 5th grade education understands this. There's a difference between stuffing money under your mattress and investing it in a bank that will use your money for other purposes, like lending, and give you a fixed rate of return. Sounds like an investment to me.

Savings accounts are making long-term commitments of putting money away and letting it grow by collecting interest that involves risks, such as the rate of inflation being higher than the interest rate of return. However, over the long term (five years or more), those dips are expected to smooth out into an overall upward growth pattern, as the rate of return is expected to be higher than inflation most of the time. Sounds like an investment to me.

Please explain how savings accounts are not investments by your own definition.

 

Nowhere in that definition does it say that savings accounts are not investments. Anyone who believes it does should not talk about economics or anything dealing with the monetary system the rest of their lives.

Please apologize akphidelt2007. Thank you!