Originally posted by glbisthewaytobe
What exactly in that article relating to the bnd isn't accurate. Please tell me.
Originally posted by Larry Roadgrader
...and if you re-read the article with your OWN income-and-expenses in mind and then substituted it for the ND bank's income-and-expenses you would see that there are GAPING holes in this articles portrayal of how "banking" works.
Let's start here from the article:
Each time we pay our state and local taxes -- and all manner of fees -- the state deposits those revenues in a bank. If you're in any state but North Dakota, nearly all of these deposits end up in Wall Street's too-big to-fail banks, because those banks are the only entities large enough to handle the load. The vast majority of the nation's 7,000 community banks are too small to provide the array of cash management services that state and local governments require. We're talking big bucks; at least $1 trillion of our local tax dollars find their way to Wall Street banks, according to Marc Armstrong, executive director of the Public Banking Institute.
So, not only are we, as taxpayers, on the hook for too-big-to-fail Wall Street banks, but we also end up giving our tax dollars to these same banks each and every time we pay a sales tax or property tax or buy a fishing license. In North Dakota, however, all that public revenue runs through its public state bank, which in turn reinvests in the state's small businesses and public infrastructure via partnerships with 80 small community banks.
Now, I'm going to assume that most forum members here each make "thousands" of dollars in deposits into their bank each month. Can we THEN claim that we each have "thousands" of dollars to invest each month from those deposits? Or haven't most of us already *ear-marked* where most of that money will then have to go to cover various costs and expenses of living that month?
Are we now supposed to magically believe its somehow different for the state of North Dakota? All of those deposits DO NOT magically end up in the citizens of North Dakota's hands because the huge bulk of the deposits will not be sitting there long at all--that money has other places it has to go. The deposit is an accounting entry and the other side of the ledger shows a tremendous outflow as the money flies out as fast as it came in--NOT to magically sprinkle money dust on North Dakota citizens but to PAY THE STATE'S BILLS.
The rest of that article is just as fanciful in its telling. Its a cute story, but its largely mythical. If running a bank was easy, everyone would do it.
What exactly in that article relating to the bnd isn't accurate. Please tell me.
Originally posted by Larry Roadgrader
...and if you re-read the article with your OWN income-and-expenses in mind and then substituted it for the ND bank's income-and-expenses you would see that there are GAPING holes in this articles portrayal of how "banking" works.
Let's start here from the article:
Each time we pay our state and local taxes -- and all manner of fees -- the state deposits those revenues in a bank. If you're in any state but North Dakota, nearly all of these deposits end up in Wall Street's too-big to-fail banks, because those banks are the only entities large enough to handle the load. The vast majority of the nation's 7,000 community banks are too small to provide the array of cash management services that state and local governments require. We're talking big bucks; at least $1 trillion of our local tax dollars find their way to Wall Street banks, according to Marc Armstrong, executive director of the Public Banking Institute.
So, not only are we, as taxpayers, on the hook for too-big-to-fail Wall Street banks, but we also end up giving our tax dollars to these same banks each and every time we pay a sales tax or property tax or buy a fishing license. In North Dakota, however, all that public revenue runs through its public state bank, which in turn reinvests in the state's small businesses and public infrastructure via partnerships with 80 small community banks.
Now, I'm going to assume that most forum members here each make "thousands" of dollars in deposits into their bank each month. Can we THEN claim that we each have "thousands" of dollars to invest each month from those deposits? Or haven't most of us already *ear-marked* where most of that money will then have to go to cover various costs and expenses of living that month?
Are we now supposed to magically believe its somehow different for the state of North Dakota? All of those deposits DO NOT magically end up in the citizens of North Dakota's hands because the huge bulk of the deposits will not be sitting there long at all--that money has other places it has to go. The deposit is an accounting entry and the other side of the ledger shows a tremendous outflow as the money flies out as fast as it came in--NOT to magically sprinkle money dust on North Dakota citizens but to PAY THE STATE'S BILLS.
The rest of that article is just as fanciful in its telling. Its a cute story, but its largely mythical. If running a bank was easy, everyone would do it.
