Do Option Sellers Have a Trading Edge?

[StarDust9182]

Full reserve banking is incompatible with free mkt capitalism. This has been demonstrated empirically, but it also is a matter of basic common sense. Trying to prevent fractional reserve banking through regulation is like trying to outlaw fornication. And the most ironic thing is that, even if you were to ban fractional reserve banking and adopt the gold standard, you still could easily have inflation. There's ample precedent for that as well.

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Interesting. Do you have any suggestions for further research?

 

[xelite777]

Interesting. Do you have any suggestions for further research?

What research?

All lies written by well paid "economists" and "experts" to keep the public ignorant.

Fractional reserve should not exist and interest should not exist, period.

Why do think charging interest (on a loan) is forbidden in the Bible and other holy books and the only blessed currency is gold?

 

[jerry2dt]

Why do think charging interest (on a loan) is forbidden in the Bible and other holy books and the only blessed currency is gold?

Hey, I could use $100k at that rate....

 

[Martinghoul]

Interesting. Do you have any suggestions for further research?

What sort of research? You mean the economic history that examines the episodes that I have described?

 

[newwurldmn]

What sort of research? You mean the economic history that examines the episodes that I have described?

Can't you have a factional reserve system with money being backed by gold?

 

[xelite777]

Can't you have a factional reserve system with money being backed by gold?

No, mathematically impossible. You cannot create money out of nothing and back it up with gold, unless you can also create gold out of nothing.

The whole fractional reserve system is evil and the cause of the financial mess we are in today.

 

[newwurldmn]

No, mathematically impossible. You cannot create money out of nothing and back it up with gold, unless you can also create gold out of nothing.

The whole fractional reserve system is evil and the cause of the financial mess we are in today.

Weren't banks doing that before? You deposit $100 in a checking account and then bank lends out $90. All $100 is backed by gold in the federal reserve vaults.

I'm basing this on what I read on Investopedia, so I may be missing something big here.

 

[Martinghoul]

Can't you have a factional reserve system with money being backed by gold?

Yes, you most definitely could... In fact, it was a relatively common setup in many places for a good long while.

 

[xelite777]

Weren't banks doing that before? You deposit $100 in a checking account and then bank lends out $90. All $100 is backed by gold in the federal reserve vaults.

I'm basing this on what I read on Investopedia, so I may be missing something big here.

Take a look at this video and see how complex (or easy!) the fractional reserve system is:
https://www.youtube.com/watch?v=iFDe5kUUyT0

 

[StarDust9182]

What sort of research? You mean the economic history that examines the episodes that I have described?

In particular the data that supports your comment that "Full reserve banking is incompatible with free mkt capitalism." I presume you have some basis for that beyond just your opinion and I would like to research it further.