Quote from: o_e_l_e_o on July 27, 2019, 08:28:51 AM

Quote from: deisik on July 26, 2019, 09:25:02 PM

Either way, you are risking your future loans. That's not a mere promise in my eyes

Correct, but the risk of of not being able to take out any futures loans is a loss for the customer, not a gain for the bank. The bank does not receive any new assets or reserves from refusing to offer loans to customers who have previously defaulted

But it doesn't receive them even if it approves the loan

Remember you are talking about uncollateralized debt, right? In this way, if the bank refuses the loan to someone without a credit history, it doesn't run the risk of a future default but it (or some other bank in the system) has already incurred some losses from the past default of this borrower. As you can see, it involves a little more than just a promise of a random dude from the street. In short, empty promises don't work. You need something else, more solid

Quote from: o_e_l_e_o on July 27, 2019, 08:28:51 AM

Quote from: deisik on July 26, 2019, 09:25:02 PM

A bank may in fact have real depositors who brought their hard-earned cash to the bank. Then the loans in question can be given out of these deposits or covered by them. In this case, you can't possibly say that the money for such loans was created out of nothing

Sure, but then the money in the depositors account is now no long backed up by reserves

Um, I'm not sure what you mean by this. The money in the bank "depository" is the reserves which are used to back up a loan

Quote from: o_e_l_e_o on July 27, 2019, 08:28:51 AM

Let's say I deposit $1000 at a bank, and then bank then loans that $1000 out to you. The next day, I decide I need to withdraw my $1000. Does the bank say "Sorry, you can't withdraw, it's out on loan"? Of course not

Are you sure you know how deposits actually work? It is in fact more like ""Sorry, you can't withdraw until date X"

Quote from: Kakmakr on July 27, 2019, 11:24:29 AM

You will never convince me that credit is "good" money creation

Okay then