Warrior General Games

Originally posted by Cuivienen
Originally posted by Cuivienen

You are right about one thing though. Central banks work well. But not because of the fairyland bs in that article.



missed that and I apologize.

Originally posted by Larry Roadgrader
Originally posted by Larry Roadgrader

I applaud that bank for what its done, but its not doing what that article claims in the manner in which the article claims.



That doesn't mean you like it. And it took you repeated prodding to get that point.

Originally posted by Larry Roadgrader

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.

Where does it say North Dakotans don't pay their bills? Where does it say ALL of the deposits end up re-invested locally?

It doesn't. The author assumes the reader is smart enough to make the apples-to-apples comparison of tax deposits into Wall Street banks vs tax deposits into the publicly-held Bank of North Dakota.

Originally posted by Cuivienen
It doesn't matter where the tax money is deposited. That doesn't mean anything.

Of course it does. That's the whole point!

Option A) Wall Street bank profits

Option B) Publicly owned bank re-invests locally and local businesses as well as taxpayers profit

What part of this don't you get?

Lurchy, I know you know nothing about what you are talking about, but I'll respond anyway. Banks don't earn shit on deposits right now. Rates are far too low to support any kind of spread.

I know you don't know what that means, but whatever.

Also, your option B is a total non sequitur. What about Option C) The unicorns come and shit gold bricks all over ND?

Cliffs: the whole point is the part you don't get is all of it.

I just had to pay $3.50 to remove my money from an ATM.

Banks are evil bastards!!!

Originally posted by Cuivienen
Lurchy, I know you know nothing about what you are talking about, but I'll respond anyway. Banks don't earn shit on deposits right now. Rates are far too low to support any kind of spread.

I know you don't know what that means, but whatever.

Also, your option B is a total non sequitur. What about Option C) The unicorns come and shit gold bricks all over ND?

Cliffs: the whole point is the part you don't get is all of it.



Still working on that reading comprehension issue?

BND profits that you claim don't exist; fta:

In 2011, the BND provided more than $70 million to the state's coffers. Extrapolate that profit-per-person to a big state like California and you're looking at an extra $3.8 billion a year in state revenues that could be used to fund education and infrastructure.

...

BND blows away any Wall Street bank for low exec salaries; fta: (imagine how low their other overhead/expenses are compared to Wall Street banks)

As state government employees, BND executives have no incentive to gamble their way toward enormous pay packages. As you can see, the top six BND officers earn a good living, but on Wall Street, cooks and chauffeurs earn more.

Eric Hardmeyer, President and CEO: $232,500
Bob Humann, Chief Lending Officer: $135,133
Tim Porter, Chief Administrative Officer: $122,533
Joe Herslip, Chief Business Officer: $105,000
Lori Leingang, Chief Administrative Officer: $105,000
Wally Erhardt, Director of Student Loans of North Dakota: $91,725

The very existence of a successful BND undermines Wall Street's claim that in order to attract the best talent big banks need to offer enormous pay packages. Yet somehow, North Dakota is able to find the talent to run one of the soundest banks in the country? The BND is living proof that Wall Street's rationale for sky-high executive pay is a self-serving fabrication.

.....

how about the costs of borrowing for the public/govt entities that taxpayers are on the hook for; fta:

In the 49 states without a public bank, there's no safe place to turn for loans to rebuild schools and finance other public infrastructure projects. That creates an enormous opportunity for Wall Street firms to hook localities on expensive bond programs -- like capital appreciation bonds, which can lead to repayments equaling 10 times the original loan. Investment bankers and advisers also make enormous fees by selling expensive, high-risk financial schemes to state and local governments (read an investigative report here). But such schemes are useless in North Dakota where the state bank provides the capital the state needs for a fraction of the long-term costs.

~~~

But apparently, all of that is wrong because you believe unicorns shit bricks of gold.

Originally posted by Lurchy
Still working on that reading comprehension issue?

I've met 4 year olds that pick things up faster than you do. Grats.

Originally posted by Cuivienen
I've met 4 year olds that pick things up faster than you do. Grats.

Either you meet a lot of 4 year olds or Lurchy is really simple minded.

I'd say the split is about 50/50.

Corndog, let's review shall we:

Originally posted by Lurchy
BND profits that you claim don't exist

Lurchy thinks I claimed that BND does not make a profit somehow, yet simultaneously thinks I am the one with the reading comp issues.


Originally posted by Lurchy
how about the costs of borrowing for the public/govt entities that taxpayers are on the hook for

Lurchy thinks borrowing costs are high at the moment. Meanwhile everyone else is talking about record low borrowing costs. Also, Lurchy thinks somehow depositing tax receipts is different to any other kind of deposit, because he doesn't know literally the first thing about banking.


Originally posted by Lurchy
you believe unicorns shit bricks of gold.

Lurchy thinks I believe this.




Yeah, I'm going to say chances are I haven't met very many 4 year olds.

Originally posted by Lurchy
Where does it say North Dakotans don't pay their bills?


Where in any of my posts does it state that North Dakotans don't pay their bills?

Originally posted by Larry Roadgrader

Where in any of my posts does it state that North Dakotans don't pay their bills?

Lurchy doesn't have a reading comp problem, so it must say that somewhere.

The ironic part of this thread is liberal bashing of an isolated case of one moron who chose to ignore optional healthcare when they happily handout food stamps, free housing and cell phones to people who choose not to better themselves or get some form of a job on every tax payers tab. But hey u gotta have you're cake and it eat to once in a while