I have some concerns about the Federal Government here in lue of the bank failures recently.
If a bank fails due to not having enough cash to pay depositors that is understandable as the bank has loaned all that cash out to make money on it. They are constantly diluting our cash by loaning out 9/10th of every cash they take in. However, that money is invested in loans on homes, cars, and businesses. So in time, they get the money back and it makes money.
The question is, now that the bank is taken over, all that collateral is taken by WHO? Does the Federal government now own all that and is making money on it? If they foreclose on those homes and business do they now own everything backed by those loans? Is it a way for the government to have another way to take over our property?
The Federal government owns the FDIC so why do they need to raise interest rates? They are just printing money. They can just print some more money. It doesn’t make sense.
If we want the banks to have more cash on hand we need to change the laws that allows them to loan out all our cash deposited. Presently, banks only need to keep 10% of all cash on hand. Change that to 50% and it would insure the banks wouldn’t be out of cash.