European Tribune - Comments - Helicopter Economics

Helicopter Economics | 27 comments (27 topical, 0 editorial, 0 hidden)

Holding the customer's money is a liability. The bank has to do something with the money and that entails risk. Perhaps the banks are by now considered to be embezzlers and gambling addicts. :-)

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Sep 7th, 2010 at 09:07:04 AM EST
[ Parent ]

Re: Helicopter Economics (none / 0)

But if deposits are seen as a problem banks can simply reduce the interest they pay to the level the central bank pays on excessive reserves.

Wait this is important. Someone is wrong on the Internet.

by generic on Tue Sep 7th, 2010 at 10:03:44 AM EST
[ Parent ]

Re: Helicopter Economics (none / 0)

But if the worry is that the bank will squander the deposit...

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Sep 7th, 2010 at 12:10:40 PM EST
[ Parent ]

Helicopter Economics | 27 comments (27 topical, 0 editorial, 0 hidden)

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