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run on the banks, 1930's style?

Posted By: Steve Mellen
Date: Sunday, 17 April 2011, at 4:41 p.m.

In Response To: run on the banks, 1930's style? (Chuck Bower)

It depends on how well regulated these companies are (outside the US, who knows), but using customer deposits for operating capital is virtually always a no-no. If you use customer deposits to make loans, then your balance sheet comes out even because those loans will be repaid at some point. But if you use customer deposits to pay your bills, relying on new deposits to cover any withdrawal requests, then you're essentially operating a Ponzi scheme.

Messages In This Thread

• TrueMoneyGames
  Marcos Nahhas -- Saturday, 16 April 2011, at 4:29 p.m.
  • TrueMoneyGames
    mtuhtan -- Saturday, 16 April 2011, at 7:44 p.m.
    • TrueMoneyGames
      Sebastiaan kuijs -- Sunday, 17 April 2011, at 10:12 a.m.
      • TrueMoneyGames
        misja -- Monday, 18 April 2011, at 6:51 a.m.
  • TrueMoneyGames
    Chiva Tafazzoli -- Saturday, 16 April 2011, at 8:03 p.m.
  • TrueMoneyGames
    ForestFriend -- Saturday, 16 April 2011, at 8:55 p.m.
    • Cannot open playwsob site *NM*
      mtuhtan -- Saturday, 16 April 2011, at 9:04 p.m.
      • Cannot open playwsob site
        ForestFriend -- Saturday, 16 April 2011, at 9:07 p.m.
        • Cannot open playwsob site
          Stick -- Saturday, 16 April 2011, at 9:24 p.m.
          • Cannot open playwsob site
            Marcos Nahhas -- Saturday, 16 April 2011, at 11:03 p.m.
  • This sucks
    happyjuggler0 -- Sunday, 17 April 2011, at 1:28 a.m.
    • This sucks
      Bill Riles -- Sunday, 17 April 2011, at 2:41 a.m.
      • This sucks
        Jake Jacobs -- Sunday, 17 April 2011, at 3:02 a.m.
        • frozen funds
          Chuck Bower -- Sunday, 17 April 2011, at 4:09 p.m.
    • update
      happyjuggler0 -- Sunday, 17 April 2011, at 4:26 a.m.
      • update
        Stick -- Sunday, 17 April 2011, at 4:32 a.m.
        • update
          happyjuggler0 -- Sunday, 17 April 2011, at 4:42 a.m.
          • update
            Stick -- Sunday, 17 April 2011, at 4:45 a.m.
            • update
              happyjuggler0 -- Sunday, 17 April 2011, at 4:48 a.m.
            • update
              Michael Petch -- Sunday, 17 April 2011, at 4:55 a.m.
      • update
        Marcos Nahhas -- Sunday, 17 April 2011, at 4:54 a.m.
      • update
        Casper van der Tak -- Sunday, 17 April 2011, at 6:12 a.m.
        • update
          robby -- Thursday, 21 April 2011, at 6:57 a.m.
      • update
        Barry Silliman -- Sunday, 17 April 2011, at 2:28 p.m.
      • update
        Bill Riles -- Sunday, 17 April 2011, at 2:57 p.m.
      • run on the banks, 1930's style?
        Chuck Bower -- Sunday, 17 April 2011, at 4:16 p.m.
        • run on the banks, 1930's style?
          Steve Mellen -- Sunday, 17 April 2011, at 4:41 p.m.
    • This sucks
      Marcos Nahhas -- Sunday, 17 April 2011, at 4:29 a.m.
  • TrueMoneyGames
    robby -- Tuesday, 19 April 2011, at 11:21 a.m.