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To: LibsRJerks

But then what happens, when they shift money to black owned banks?

Do the banks lend money only to black businesses and individuals? Or primarily to black owned businesses and black people in general? A bank “invests” by loaning money to businesses, who then repay the loans with interest.

Someone once told me that “bank accounting” is backwards from accounting in other businesses. In that, the money you deposit in a bank is an accounting liability to them; they owe you that money back if you want to withdraw your money.

The assets of a bank are the loans which banks make to earn interest. But the assets are on paper, representing cash which the bank has paid out in the form of loans.

That’s how it was explained to me, anyway, that the bank assets are loans, not cash or cash equivalents. And that your cash in the bank is really a liability for that bank.


14 posted on 06/30/2020 7:59:11 PM PDT by Dilbert San Diego
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To: Dilbert San Diego

If you borrow $100k and can’t pay it back, you have a problem.

If you borrow $100M and can’t pay it back, the bank has a problem.


39 posted on 06/30/2020 8:32:23 PM PDT by scrabblehack
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