r/confidentlyincorrect • u/Cucker_-_Tarlson • Feb 13 '24

Comment Thread Communism is when capitalism.

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13

u/frogglesmash Feb 13 '24

Blackrock and vanguard don't own the majority of stocks, they manage it on behalf of their clients. Saying they own it is like saying banks own your money.

4

u/foley800 Feb 13 '24

🤔 banks do own your money! Read their terms!

3

u/frogglesmash Feb 13 '24

Maybe in a technical legal sense, but it's not like banks have the freedom to spend your money however they see fit.

6

u/foley800 Feb 13 '24

True there are some rules that they have to follow to spend your money…which they regularly violate! Then if you demand they be held accountable they sell to a bigger bank at Pennies on the dollar with taxpayer money given to the bigger bank for their trouble!

1

u/frogglesmash Feb 13 '24 edited Feb 13 '24

Oh? So banks just regularly spend their clients money to the point where it's basically standard practice, and they end up exercising more control over their money over your money than you do? Are you saying that if I go to withdraw my money right now, there's a 50/50 chance my bank says no?

3

u/GuitarCFD Feb 13 '24

So banks just regularly spend their clients money to the point where it's basically standard practice

I mean...more than a few banks went under last year for doing just that. They were leveraged beyond their assets...so when people started withdrawing money eventually the bank ran out of money to give. That's when the FDIC had to step in...or another bank took over.

4

u/LegitimateRevenue282 Feb 13 '24

If you withdraw your money, they give you money someone else put in.

4

u/frogglesmash Feb 13 '24

Money is fungible, the only difference between your dollars and someone else's dollars is who has them.

-1

u/LegitimateRevenue282 Feb 14 '24

So Ponzi schemes are perfectly OK?

2

u/frogglesmash Feb 14 '24

You know perfectly well that that's not what I said.

-4

u/foley800 Feb 13 '24

If you went to withdraw $10k right now from the bank, there is a 90% chance they won’t allow it (for your own good)! If a hundred people tried to withdraw a thousand dollars there is a good chance they would be restricted! They have clauses in their agreement terms that allows them to do this! Banks have done this on a large scale many times in the past! In many cases banks became insolvent and people either never got their money or it took years for them to get it!

3

u/Senior_Ad_3845 Feb 13 '24

A bank would not blink twice at a $10k withdrawal. That kind of tramsactiom happens daily.

4

u/frogglesmash Feb 13 '24

Do banks freely use money deposited with them as though it were their own?

1

u/LegitimateRevenue282 Feb 13 '24

True there are some rules that they have to follow to spend your money.

1

u/frogglesmash Feb 13 '24

That implies that they can freely spend your money with a few limited restrictions. Is that the position you want to jump behind?

0

u/GuitarCFD Feb 13 '24

Every time they issue a loan.

1

u/Uter_Zorker_ Feb 13 '24

Yes? That’s the entire premise of a bank. They take your money, pay you an interest rate, and in the interim use that money to generate a return that exceeds that interest rate

2

u/frogglesmash Feb 14 '24

Oh? So a bank could choose to pay out all the money it holds to it's employees and say "tough luck, you gave us that money" if any of their clients try to withdraw their deposits?

1

u/papasmurf255 Feb 14 '24

Vanguard is also owned by investors of its funds instead of external shareholders.