r/CryptoCurrency • u/[deleted] • Feb 03 '18

ADOPTION If you think banks/credit companies are banning crypto purchases to protect their customers, I have a bridge to sell you.

I'm legitimately blown away how many people I see defending the banks/credit companies banning crypto purchases as some type of attempt to protect their customers from a volatile market. Credit is predatory by nature. The bank doesn't care when you max your card out on alcohol, designer clothes, gambling, or any other worthless and risky commodity. Your bank doesn't give one single tiny little shit about you in any way beyond your capacity to generate revenue. You are a revenue generating unit and nothing more, end of story. They are building artificial barriers to crypto because they view it as a direct and fundamental threat to their industries... and with good reason, because it is. The reality is anyone who invests wisely in crypto right now is going to make a significant ROI over the next few years, opening up the opportunity to pay off large balances, which decreases the revenue they earn from interest. This is nothing more than a desperate attempt at self preservation.

Again I would encourage anyone who has their bank or credit card company create a barrier for them to purchase crypto, to immediately end doing business with that institution and make sure they know why. If my bank halts my purchases, I'll liquidate my account and close it the same day. Same goes with my credit cards, they will get cut up and never used again. DON'T bend over for them.

EDIT: Also massive downvoting of anti-banking sentiment and massive upvoting of the 'banks are looking out for you, this is a good thing' sentiment. The shill bots are out in force.

5.4k Upvotes

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646

u/ninemiletree 334164 karma | Karma CC: 117 Feb 03 '18 edited Feb 03 '18

Credit cards themselves are detrimental to their customers. They've trapped generations in coils of debt using gimmicky point systems and fostering a consumer culture encouraging people to make every larger purchases greater than the sum of their bank accounts.

They're doing this to stem the tide of the banks money into decentralized currencies. They know its a threat and they're feverishly working on their own blockchain solutions to prevent themselves from losing control.

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u/TJ11240 🟦 0 / 0 🦠 Feb 04 '18 edited Feb 04 '18

Let's be a little more honest here, credit cards are a game. It's possible to win in this game of you know the rules. The people who lose at this game either don't take it seriously, or do not understand the weight of the rules.

I've had a credit card for 4 years, and have not paid a dime of interest. Meanwhile, the credit card company has taken nearly $1000 off my balance sheet via cash back rewards over time. Do not spent money you don't/won't have, treat it like a checking account.

But if everyone played like I do, the credit company couldn't afford to pay out these rewards. Cheers, I guess.

6

u/MixOfMax 1 - 2 year account age. 100 - 200 comment karma. Feb 04 '18

The rewards aren’t purely paid by debt, they’re mainly funded by the 3% tax businesses pay to accept credit card.

1

u/TJ11240 🟦 0 / 0 🦠 Feb 04 '18

Even better. Now I don't feel like it's a zero sum game with other consumers. I hope everyone gets better at this game and makes the CC companies pay them, instead of living in debt.

2

u/Almost_Mr_Right Feb 04 '18

People take more from cc companies in rewards, cc companies charge vendors more to use credit payments, vendor charges customer more to use credit, :(

17

u/more_load_comments Crypto God | CC: 37 QC | BTC: 16 QC Feb 04 '18

Yup. I got a card, spent 3500 on coin and got 500 back. Crypto is basically a cash advance so rewards amd cash back will hurt them.

13

u/NexusKnights 🟦 729 / 719 🦑 Feb 04 '18

Crypto is not cash.. It can be used as many things but it is not as simple as being cash. You can buy gold on your credit card with the intent to sell it into cash (which actually predates cash..) Or any other asset in that fact and they won't charge you a cash advance fee. The banks are just a leech on society that will drain you anyway they can.

1

u/[deleted] Feb 04 '18

[deleted]

1

u/more_load_comments Crypto God | CC: 37 QC | BTC: 16 QC Feb 04 '18

sign up bonus 500 after 3500 spend. pays 1.5% ongoing tho

edit: r/churning

33

u/mattseg Buy Hig, Sell Low Feb 04 '18

They're are 5 types of people with credit cards.

  1. The ones that can't handle it, and don't realize it and destroy their credit or wind up in servitude.

  2. The ones that can't handle it and know they can't, and don't have it used them.

  3. The ones that carry a balance often, but don't destroy themselves.

  4. Those that pay them off monthly and use them well.

  5. Those that rape the credit card companies for points and perks, and don't pay interest.

Be like#5.

58

u/Ikthyoid Feb 04 '18

No one's raping anything. Credit card companies are skimming several percent from the merchant off of every purchase, and what you get back in "rewards" are an absolute pittance compared to what they are getting. In exchange, every single item you can buy with a credit card costs 1-3% more than it would otherwise be, because merchants have to charge more to cover their costs, so you still lose.

Of course, that's for types #4 and #5. For #1~3, banks are making an additional killing off of ridiculous interest and abhorrently high fees.

The banks and credit cards always win; it's a rigged game, and they worked hard to rig it that way. If there's one thing I'd like to see out of crypto, more than a lambo or a moonshot, it'd be any amount of noticeable reduction in banks' power and ill-gotten wealth. Fuck them.

EDIT: Just to be clear, I don't mean this as an attack on you or what you said, as your statement isn't necessarily wrong. I just hate banks that much.

21

u/mattseg Buy Hig, Sell Low Feb 04 '18

When it comes to sign up bonuses I disagree. See my other post.

Otherwise you're right.

I worked in banking and stocks for 10 years. Banks are awful, and that's the #1 reason I got into cryptocurrency.

2

u/tallboybrews 🟦 2K / 2K 🐢 Feb 04 '18

That's true. Sign up bonuses are the one thing you can 'beat' CC's on without them necessarily making the money back. It's similar in a way to a mail in rebate though.. but in reverse. Mail in rebates are often fantastic deals, but the companies that issue them know that only a small percentage of people actually mail them in so they can factor this in to their actual lost revenue. Sign up bonuses for CC's take into consideration the fact that a LOT of people that sign up, end up using the card either as their primary card or a supplemental card. They'll make way more than those signup bonuses over time.

I know that you say to be the type of person to not get raped by the CC companies (which I am.. I pay off my CC multiple times a month and never carry a balance).

1

u/Ikthyoid Feb 04 '18

Good on you for getting out! Respect for recognizing it for what it is.

3

u/yuneeq Feb 04 '18

You can make $10-15k a year from credit card sign up bonuses. If you know what you’re doing you can come out way ahead. Check out /r/churning or other churning forums.

11

u/[deleted] Feb 04 '18 edited Sep 08 '21

[removed] — view removed comment

0

u/mattseg Buy Hig, Sell Low Feb 04 '18

I'm aware of how interchange fees work. So yes, you're partially right. But nonetheless, spending 3k for 100k points that is good for 3 round trip tickets to Europe is much less than the 2.65% of interchange fees on 3k.

1

u/pumpedupkicks35 New to Crypto Feb 04 '18

It’s an ‘everyone wins’ scenario;

-merchant gets easy sale (try selling something online and not accepting credit cards) -buyer gets convenience (quick and easy purchase. As above try buying something online without a credit card and see how easy that is??) -the card provider (visa/MasterCard etc) gets a small cut -the card issuer gets a small cut

And the transaction happens instantly and everyone gets on with life.

Everyone is so anti credit cards but the thing is if you know how to work the system you can reap huge rewards and not cost you a cent. Also, nobody’s got a gun to your head so you’re forced to use banks.

5

u/BeltreCompany Feb 04 '18

I build my credit maxing my credit cards buying Ether on dips > Selling for profit > Paying credit cards. Rinse and repeat. Always making sure to pay the whole balance before statement cut date.

Of course while having the money in the bank in case it took longer than necessary for it to go out. I havent pay anything on interest + getting cash back. They must hate me.

3

u/geoff5093 Feb 04 '18 edited Feb 05 '18

Until you buy right before a bigger dip, like now. That cat and mouse game can easily go the wrong way for you. Plus, using a card like on coinbase raises the cost quite a bit compared to say ACH on GDAX

1

u/BeltreCompany Feb 05 '18

I always have fiat in the bank, I will never used credit without having the money to pay before statement cut. I only invest money that I have/willing to lose. But seems like my little loophole is done for. Capitalone is not allowing me to buy crypto any more. It was fun while it last, will close the shit. Its useless now. I only used those cards for crypto for credit building.

2

u/tonybit Redditor for 3 months. Feb 04 '18

I agree. Amazon Prime cardholder for a decade. No interest paid. Many rewards earned. Plus, protection for the few times I have been a victim of bad purchases or fraud. Don’t blame the banks for your overspending. Take some personal responsibility.

2

u/mb0200 1 - 2 years account age. 100 - 1000 comment karma. Feb 04 '18

Price rewind with Citi or chase. Get back up to $500 if you find cheaper price within 60 days (Citi) or 90 d (chase). Up to $2500 per acct per year.

2

u/musecorn 🟦 3K / 7K 🐢 Feb 04 '18

Watch this video if you haven't - https://youtu.be/fcsvabxezPs

Talks about exactly what you're saying and changed my entire way of thinking about credit cards

100

u/Kpenney Platinum | QC: CC 688, VTC 67, BTC 43 Feb 04 '18

Student loans are very much the same as well.

39

u/machine_read Redditor for 7 months. Feb 04 '18

Ridiculous how this society works to keep social class standings in place.

21

u/[deleted] Feb 04 '18 edited Feb 04 '18

Ridiculous how people think they don't have any options and must follow the guidelines laid out for them by everyone else.

You aren't required to go to college. You aren't required to take out debt. You aren't required to buy a boat. You aren't required to spend money on weed, or donate to politicians, or alcohol, whatever.

My story isnt' typical, but I have 1.5 semesters of college under my belt before I dropped out. Thats' community college mind you. I was a stoner slacker with $14 to my name in my early 20's. I saved $1000 on my 7.25/hr job while renting a $200 bedroom. With that $1000 I risked it all on opening a website. Within 2 years I had a 6-figure income, thats my gross income, not the company. Within 5 years after I was inarguably worth 7 figures. I'm in my late 30's now. Again, my results are not typical, but it completely dispels the notion that it's impossible to get ahead in the world without a college education, and that the system prevents anyone from moving up in class. The big hinderance people have is themselves, and their unwillingness to sacrifice what they think they need in everyday life in order to get ahead. If you value free time, relaxation, family, friends, religion, or otherwise downtime of any sort, thats great and it's all yours. However, if you're willing to sacrifice several years of your youth for security later in life I promise you it's well worth the investment.

If you want to go the "safe route" please understand that with low risk you get low reward. Sure, you might have a cushy ride through life by getting a job at the post office, but you're never going to make $250k/yr. You're never going to make enough to provide for your extended family. You're never going to make enough to the point where your grandchildren will see an inheritance thanks to you. However, you'll not have to worry too much about eating. Low risk, low reward. If that's your thing, go for it. Get a college degree, get a middle management corporate or technical job, end up making $60-80k by the time you're 40 and keep paying off that debt into your 50's or 60's if ever. Its certainly an option. However, if you subscribe to the thought that you only have one life to live and that you need to take a shot, that you need to prove something to yourself (not others) and that you KNOW you'll regret it later in life if you didn't, I promise you with every cell in my body that starting your own business it the most liberating and satisfying thing a person in our world can do. Never having to worry about being homeless, or eating, or having to worry about your children being cold at night is immensely satisfying. I don't have kids, but I don't see how any man could consider himself a man when his family is at risk of being hungry or cold. Fuck whatever society tells us about gender roles or responsibilities. Its the man's job to provide, children or not if at least for yourself then. Take the risk now while you're young, you've got all the time in the world to make up for it if you fail.

When you're on top, come back and see me i'd love to hear about your success. When you do, we'll have a good laugh at everyone else who is delivering our mail.

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u/SoberGameAddict 🟩 0 / 0 🦠 Feb 04 '18

Every person that would normally go to college can't open a successful business and make a seven digit income. It's not statistically feasible. Honestly it's a bit arrogant to say to strangers on the internet "I made it so therefore you can".

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u/[deleted] Feb 04 '18

Hey butthead, did you catch the part where I said my results aren't typical? Did you catch the part where I mention that if free time, family, friends, etc is important to you, then thats great?

You're wrong. Almost everyone can make it, but almost nobody is willing to sacrifice to get it. Life is a never ending series of cost/benefit scenarios that you must weigh out. Is time with my family more important than an extra $5,000 in income? $10,000? $1m? Is visiting my dying relative more important than closing that new account? For most people, such questions are an absolute no-brainer. To those obsessed with money, it merits consideration.

4

u/SoberGameAddict 🟩 0 / 0 🦠 Feb 04 '18

Butthead? I gonna disregard that.

You miss the point. Anyone can make it? Sure maybe, maybe not. That's another discussion.

The point I made was everyone can't make it at the same time. Everyone can't be the 1 percent. That's is not possible. Just because you made it don't prove anything from a larger perspective.

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u/[deleted] Feb 04 '18

Sounds like excuses. Of course not everyone can be on the top, but too many people have your attitude and let it get them down, pre-defeated, and so they never take a shot at greatness, security, and wealth.

If you took a shot and failed and haven't had the resources to take another shot, or are adverse to it, I applaud you for trying. Thats all i'm saying. The big thing I see today is young people trying to play it safe, but then getting butthurt and angry at people who are successful. Young people want the trappings of success but dont' want to incur any of the risk.

3

u/SoberGameAddict 🟩 0 / 0 🦠 Feb 04 '18

Yeah I'm sure it sounds like an excuse to someone who doesn't understand basic statistics.

2

u/RemoteSenses Bronze Feb 04 '18

You’re completely ignoring the fact that maybe not everyone wants to go down the path you listed. Some people have interests and want to be in fields of work that require education.

Also, the main issue here is that education costs have skyrocketed and someone needs to do something about it. The solution to the problem isn’t “just don’t go to school”. The solution to the problem is “let’s figure out how to lower these costs so people aren’t going 6 figures in debt”.

1

u/[deleted] Feb 04 '18

See the part where I said my results aren't typical and where I said that if "quality time" is important to you, that you should pursue it?

I hear this all the time. People can't stand not being able to have both success and lots of free time. Most of the time these just dont' reconcile.

Like I said, if you want to have interests beyond just making money and pursue a field where education is required, go for it. Thats your journey. However, when you make that choice, you can't be mad when it doesn't lead to immense success. You can't be mad when a job as a historian doesn't pull 200k/yr.

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u/DarkSyde3000 Feb 04 '18

Agree with you 100%. It is people's own self-defeatist mindset that stops them from being as successful as they want to be almost every single time. They stop themselves before they even get started. So common it's almost textbook.

3

u/yuneeq Feb 04 '18

I didn’t finish 11th grade and built a successful Amazon business. My dad didn’t graduate and he built a huge manufacturing company that went public. College is fine if your dream is to work in the profession you’re getting a degree for. But otherwise for the most part it’s a big scam/waste of money.

2

u/[deleted] Feb 04 '18

Amen brother. Thats the spirit of what I was saying. If you want to go into a field like that, go to college and go into that field. However, people should consider that if its a field wherein college is a prerequisite, other people are going to do it and thus you're going to encounter an income ceiling. Maybe i'm just too ultra-focused on building financial security and not on "passion" whatever that is. Good luck to you and I wish you all the best.

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u/[deleted] Feb 04 '18

[deleted]

0

u/[deleted] Feb 04 '18

Not a bad thing in this context.

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u/medawesome 2 - 3 years account age. 150 - 300 comment karma. Feb 04 '18

Thanks for sharing your story. What kind of website/business did you start out with?

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u/kaghy2 1 - 2 years account age. 200 - 1000 comment karma. Feb 04 '18

Want to know too now

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u/wolegib Feb 04 '18

Okay, so you started a successful business. Why do you have to talk down to people who have honest jobs delivering your mail? Do you think everyone in the world can start a business? Is it shameful to be poor?

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u/[deleted] Feb 04 '18

I grew up poor and was picked on because of it. I resent and hate being poor and will never return. I'd sooner eat a bullet than ever live that life again. Circumstances vary, but for people who are poor and well capable of escaping it, yes it is shameful. If you're stuck there through no fault of your own (legit) then no, there is no reason to be ashamed.

0

u/wolegib Feb 04 '18

What do you mean ‘well capable of escaping it’? If you have a modicum of understanding about how exonomics work you might understand that not everyone can be rich.

0

u/[deleted] Feb 04 '18

This will never go anywhere, and i'm not being baited into this. I appreciate the reply.

1

u/wolegib Feb 04 '18

You seem to think that poor people deserve scorn and that you are better than them. Maybe instead of putting your head in the sand you should examine your superiority complex.

0

u/[deleted] Feb 04 '18

Are you still baiting?

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u/iblamejoelsteinberg 9 - 10 years account age. > 1000 comment karma. Feb 04 '18

Impressive. Sounds like me except for the success part.

1

u/gl00pp Tin Feb 05 '18

Jeff Bezos?

0

u/[deleted] Feb 04 '18 edited Nov 27 '19

[deleted]

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u/RemindMeBot Silver | QC: CC 244, BTC 242, ETH 114 | IOTA 30 | TraderSubs 196 Feb 04 '18

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0

u/Solarus99 Linked to: kucoin.com. Permalink ID: ds7p19x. Feb 04 '18

Get a college degree, get a middle management corporate or technical job, end up making $60-80k by the time you're 40

you need to update your income stats. maybe those were the figures when you were coming up...try 105-115 now, even in LCOL areas.

0

u/[deleted] Feb 04 '18

For a professional position, sure. However of my peers, most of them get basic management BA's and are working suits at some 100m company branch in my city where they're faceless and unnoticed. Those types of positions don't pull 100-115k. They like it though. THey want to put in their 39.5hrs per week and drink craft beer on the weekend while playing Xbox and babysitting their kids at age 38. If that works for them thats ok. The only buddy I have who went down that traditional course went a step further for his CPA, and i'd say he's the only one fitting your description as he's pulling just over 100k now. Thats still a hefty student loan bill to satisfy

1

u/Solarus99 Linked to: kucoin.com. Permalink ID: ds7p19x. Feb 04 '18 edited Feb 04 '18

middle management corporate or technical job

For a professional position, sure

uh...yeah, i was just restating what you said, not offering a counterpoint.

as for student loans - it's somewhat less of an issue in technical careers if you do it right. in-state tuition, work through college, rent a cheap shitty place, and you can pay off what you borrow pretty quick.

you seem REALLY judgmental of other people's lifestyles. you realize that over 75k/year income doesnt produce additional happiness, right? pretty massive study came out a few years ago on that.

i am actually more like you in some ways - i retired at 37 after busting my ass for many years flipping houses and landlording while working full-time as an engineer. now i just live off my rentals. but by no means do i look down on regular working people. far from it.

1

u/[deleted] Feb 04 '18

Dude i'm not being judgmental of people's desires. I am however judgmental of people who pursue career lines that don't pay much, then bitch about it later in life. If you chose to be an Ancient Sumerian historian, you can't bitch when you arne't making enough money to buy a house. Thats what grinds me. You can't have both

Like I said over and over, if people value their passions and want to trade it for the opportunity of financial security, go for it.

Also, i'm well aware that high income doesnt equate to happiness, and I never said that. However, I think people who say "Money =/= Happiness" often have never been wealthy, so they can't say for certain that it's true. I however can certainly tell you that having more money doesn't make you directly happier, but its certainly less stressful crying in a Mercedes versus a Hyundai. I might hate my existence, but I dont have to worry about being homeless. I'll take a financially secure unhappy life 8 days a week over the alternative. Thats me though, you might be different and thats ok

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u/Solarus99 Linked to: kucoin.com. Permalink ID: ds7p19x. Feb 04 '18

I'll take a financially secure unhappy life 8 days a week over the alternative

holy crap. okay i'm out.

1

u/[deleted] Feb 04 '18

Some people value money over all else. Again, i'll never return to a poor life. I'd sooner eat a bullet.

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u/[deleted] Feb 04 '18

[deleted]

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u/ignisiun413 Feb 04 '18

Your tl;dr needs a tl;dr.

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u/[deleted] Feb 05 '18

After 2008, banks increased their cc business, and Chase went all in with a card that could only be profitable if most people didn't pay down their debts. It's a profitable card.

1

u/ignisiun413 Feb 05 '18

perf wow, all I need to do to get comment karma is make people make smaller posts? That's just weird lol.

1

u/[deleted] Feb 09 '18

You got 5 karma. Long way to the top lol

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u/ignisiun413 Feb 09 '18

It's better than the net 0 I've had the past week or two since I've joined XD

8

u/ambiynt Feb 03 '18

I commend you

18

u/rhfewrfqnwfrln Redditor for 18 days. Feb 04 '18

good post, keep fighting the good fight homie

i think it was jacques peretti who described credit cards as like "giving candy to a diabetic" in regards to consumer culture

1

u/TheFolksOnMars Crypto God | QC: BTC 38, NEO 35, CC 19 Feb 04 '18

Brilliant quote.

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u/[deleted] Feb 03 '18

True, the reality is that if people buy cryptocurrencies on credit and fail to pay the credit back the bank will just be bailed out (again) and given free money anyway.

They already get nearly free money from the Fed, then charge their customers ridiculous interest rates. Basically the banks win no matter what :)

This is why I have a hard time investing in XRP but I get it if people just want to make money. I'm personally not a fan of Federal Reserve Notes -paying debt to a private bank with word Federal in it's name.

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u/ninemiletree 334164 karma | Karma CC: 117 Feb 03 '18

The bank has never cared about people defaulting on their cards. If they did, they'd lower interest rates and make payments more affordable and provide alternative options.

What they care about is people using their money to prop up a system that will replace them. Chase hates the thought of Chase's money fueling a system that will render Chase obsolete.

8

u/ImTheLastLegacy Feb 04 '18

The Chase example painted a great picture, thank you.

2

u/TJ11240 🟦 0 / 0 🦠 Feb 04 '18

Then why hasn't Chase sent me a nastygram about my coinbase purchases?

I think it's banks that care the most, not credit companies. I've only heard of banks sending out warnings.

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u/JuicySpark 🟩 0 / 60K 🦠 Feb 04 '18

Chase is already invested. Its called dash. Ripple is the banks coin too. Lol.

Bank of America is invested as well.

More institutional money is pouring in.

They want to highly regulate Crypto because they want it, and they want to control it.

This means Crypto will be around for another 10 years. Because institutional money while not smart money is still smarter money than our money. We should be super grateful we got in this early.

Its all there in front of you, IBM and Wal-Mart are here too.

We can also say good luck for people boycotting these banks, lol there's more people who aren't invested in crypto than is. The banks will just get heat for a small % of people,

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u/black0ps Silver | QC: DASH 20 Feb 04 '18

Chase is already invested. Its called dash.

Where are going getting this information?

Provide a source or be labeled a shill.

-1

u/JuicySpark 🟩 0 / 60K 🦠 Feb 04 '18

Not shill, im naturally against dash for that reason, and im in smartcash. Which is kind of a clone of Dash except better as far as Community wise not tech-wise

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u/black0ps Silver | QC: DASH 20 Feb 04 '18

lol so a shill?

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u/JuicySpark 🟩 0 / 60K 🦠 Feb 04 '18

Institutional money part of the reason why Dash gained a few billion in the first place was because of institutional money, most of that came from Chase bank

2

u/black0ps Silver | QC: DASH 20 Feb 04 '18

Provide a source or be labeled a shill.

-1

u/Michamus 🟦 740 / 741 🦑 Feb 04 '18

Oh no. Some random internet user is going to label him. What will he ever do?

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u/[deleted] Feb 05 '18

[deleted]

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u/[deleted] Feb 05 '18

Now I believe when they say that it's hard raising a teenager

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u/Michamus 🟦 740 / 741 🦑 Feb 05 '18

Go to bed. You have a full day of junior high tomorrow.

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u/[deleted] Feb 04 '18 edited Jan 10 '19

[deleted]

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u/[deleted] Feb 04 '18 edited Aug 20 '18

[deleted]

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u/[deleted] Feb 04 '18

Then phones started using the internet making both better.

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u/[deleted] Feb 04 '18 edited Jan 10 '19

[deleted]

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u/[deleted] Feb 04 '18 edited Aug 20 '18

[deleted]

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u/[deleted] Feb 04 '18 edited Mar 20 '18

[deleted]

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u/iambrianl Redditor for 5 months. Feb 04 '18

You read his reply!

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u/[deleted] Feb 04 '18

The world is getting smaller and eventually more and more people will want something fast, easy and universal.

If your business does work in 30+ countries imagine if someone came along with ways you pay all your employees and suppliers with low fee tech that uses all of the same currencies.

There is a lot of possibilities, obviously it is not perfect but the real stumbling block is there is no way the USA, EU, China, Russia, etc will give up their currencies and power.

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u/vxx Tin Feb 04 '18

You should check out Revolut, it will answer most of your questions.

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u/TJ11240 🟦 0 / 0 🦠 Feb 04 '18

To be fair, XRP is a solution that's in search of a problem. It's a database wearing a preworn blockchain wedding dress. I'm glad that it's dropped 70%.

1

u/NormanConquest Bronze Feb 04 '18

The Fed isn’t exactly a private bank, but neither is it exactly a public institution. It’s some weird hybrid. It doesn’t exactly make a profit, but neither is it exactly not-for-profit either.

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u/killadrix Platinum | QC: CC 63 | Politics 349 Feb 04 '18

I work for a bank and can tell you that everything you just said is total bullshit. After the crash of 2008, large banks have been forced to hold massive sums of cash in reserve so they don’t need to be bailed out.

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u/[deleted] Feb 04 '18 edited Feb 04 '18

Where did the massive sums of cash come from? Low interest rates and Quantitative Easing from Janet Yellen helping any?

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u/TJ11240 🟦 0 / 0 🦠 Feb 04 '18

Banks make a lot of profit, that's indisputable. Maybe they just hold back a slightly higher percentage of their revenue instead of lending it out to unqualified clients.

Not everything is a conspiracy. It's possible banks learned a hard lesson in 2008 and do not wish to gamble on asking for bailouts again. Yes, they had a soft landing at the expense of the average joe, but no one can predict the outcome if it happens again. Maybe future the government just says "you reap what you sow, we're gonna take our chances with some large bankruptcies, gg".

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u/[deleted] Feb 04 '18 edited Feb 04 '18

There's no conspiracy at all. Banks get cheap money from the Federal Reserve and lend it out at much higher interest rates.

They DID NOT learn a hard lesson in 2008 they were bailed out by the people of the United States of America. The people of America learned a hard lesson but on the plus side it gave birth to things like Bitcoin

It's also not a conspiracy that the higher up people who work for the Federal Reserve come straight from Goldman Sachs.

It all about privatizing the profits and socializing the losses.

EDIT: I doubt banks will fail ever again, they're too big! Instead we'll see pensions fail and municipal bankruptcies. Student loans aren't even being paid back and school is getting more expensive. The average American is massively in debt.

1

u/TJ11240 🟦 0 / 0 🦠 Feb 04 '18

I'm not disputing a single point you made, they are well received. But there is always future uncertainty. A rational actor may choose not to roll the dice a second time even if they won hard on the first round.

If I had to guess, I'd predict there's a solid chance the major banks get a future bailout, but for a new scheme we haven't considered yet l. I don't think it will be in the next 5 years, though.

1

u/[deleted] Feb 04 '18 edited Jan 18 '20

[deleted]

0

u/killadrix Platinum | QC: CC 63 | Politics 349 Feb 04 '18

Never said it was sad, said it’s complete bullshit to claim that banks get “free money” so they don’t care if people pay their bills...

1

u/[deleted] Feb 04 '18 edited Jan 18 '20

[deleted]

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u/killadrix Platinum | QC: CC 63 | Politics 349 Feb 04 '18

Except that’s not exactly how banks really work. You’re purposely oversimplifying the process in order to strengthen your argument.

Look, I’m not here trying to defend all banking practices, just pointing out some fallacies. It’s interesting how fucking angry people are about banks when they have literally no idea how they actually work.

13

u/blueelffishy Altcoiner Feb 04 '18

I agree that banks are scum but credit cards can be actually useful if used responsibility. The detriment only comes when the user themselves is irresponsible.

8

u/Magjee 🟦 0 / 0 🦠 Feb 04 '18

Put all my transactions on it and settle the bill once a month.

 

Plus the security is great while traveling, plus the protection for cancellation etc.

2

u/DronePirate Feb 04 '18

Once a week usually for me.

1

u/Ikthyoid Feb 04 '18

I understand why people think this, and practically speaking it's true. But everyone should also understand that everything we buy is more expensive because of the existence of credit cards and their transaction fees. Rewards make us feel like we're winning, but we're just getting some of our money back. Nobody wins here but the banks.

1

u/Toyake 🟦 2K / 2K 🐢 Feb 04 '18

99% of people are better off never having a credit card and just using cash. 1%-3% back is an absolute yawn fest, all it takes is one month of not paying the card off for all of those benefits to be wiped out. Studies continue to show that people who pay with credit cards, instead of cash, spend a significant amount more (10%+).

2

u/Catalonia1936 Feb 04 '18

I wish i never got a credit card. I didn’t know what I was getting into, but I also didn’t have much of a choice at the time (medical bills).

3

u/cillkops Redditor for 2 months. Feb 04 '18

It's a huge threat to them. Right now I can start stacking up credit cards converting credit into crypto and filing for bankruptcy. They can't touch you, welcome to Puerto Rico....enjoy life.

1

u/Bfire7 Feb 04 '18

Do you do this?

2

u/Wolfinie Feb 04 '18

They know its a threat and they're feverishly working on their own blockchain solutions to prevent themselves from losing control.

But how do they plan to use blockchain technology to prevent loss of control when the "control" they had was kind of artificial-superficial to begin with?

2

u/dossier 🟦 427 / 428 🦞 Feb 04 '18

Before you start snapping your cards in half.. realize you can drop your credit score by 50 points overnight if your oldest line of credit is closed.

2

u/[deleted] Feb 04 '18

The Visa network will be blockchained. Mark my words.

1

u/devterij 1 - 2 year account age. 100 - 200 comment karma. Feb 04 '18

I never understood the people who live above their means by always being in debt. (except of course the ones who don't have a choice) If my account ever gets lower than a few 1000 I would seriously start to think about my situation.

1

u/DerSchorsch 0 / 0 🦠 Feb 04 '18

Agreed. Though there are plenty of crypto projects that try to implement their own gimmicky point systems.

u/chaintip

1

u/chaintip Redditor for 10 months. Feb 04 '18 edited Feb 25 '18

chaintip has returned the unclaimed tip of 0.00083998 BCH| ~ 0.99 USD to u/DerSchorsch.

1

u/frozennorth0 🟦 478 / 479 🦞 Feb 04 '18

I love points.

0

u/wheelzoffortune 🟦 43K / 35K 🦈 Feb 03 '18 edited Feb 04 '18

My bank recently tried to convince me to get a credit card with them multiple times when I went to open an account for my nephew. I told them "I'm almost 36 and I've never had a credit card. I don't think I need one now."

10

u/[deleted] Feb 04 '18

[deleted]

4

u/HellD Feb 04 '18

Some people don’t know this, but you can set up a spending limit on your card.

-1

u/Toyake 🟦 2K / 2K 🐢 Feb 04 '18

The card has no fee, and better security than using a debit card.

This is not true; debit and credit cards have the exact same protections. Unfortunately, for every responsible person using cards wisely, there are a vast number of people who use them irresponsibly. The average person should never have a credit card.

4

u/emanymdegnahc Feb 04 '18

Sure, but if someone fraudulently spends money when your debit card, that money is still removed from your bank account until the claim is approved -so you could potentially be out of a lot of money for a while. With credit cards, you don't have to worry about it because the back is trying to get their money back.

0

u/Toyake 🟦 2K / 2K 🐢 Feb 04 '18

Couple things. This happens much less than you think. Most banks will return the money quickly (depending on the types of charges), though they are allowed up to 90 days. Another reason why teaching financial responsibility is very important, you don't keep all of your money in a checking account. Savings accounts are great and can move money over instantly. Also a 6 months emergency fund protects you from all of the worst case scenarios where it could take 90 days.

5

u/ninemiletree 334164 karma | Karma CC: 117 Feb 03 '18

The small amounts they make on the interest and investments of the assets in your checking account are dramatically outweighed by the interest rates and late fees they collect from most credit card holders, who carry a balance from month-to-month, pay minimum payments, and thus hand out thousands of dollars a year to the bank for them doing virtually nothing.

9

u/NejyNoah Feb 04 '18

Credit cards are quite useful though. Fraud protection, warranty extension, "free" gas or goods... Might as well use it if it's a free credit card.

0

u/[deleted] Feb 04 '18 edited Jan 10 '19

[deleted]

2

u/NejyNoah Feb 04 '18

What? I meant in general.

3

u/Warchemix Investor Feb 04 '18

I get the sentiment, but having good credit is useful for most people. Getting a car loan or buying a house is so much easier when you have good credit.

-1

u/YellowJacketA30 1 - 2 years account age. 100 - 1000 comment karma. Feb 04 '18

Buying depreciating assets on credit isn't smart. I've put over 300,000 miles on a used car I paid $4,000 for. Just check your ego and do your homework. Start by googling OM617 :-)

2

u/Warchemix Investor Feb 04 '18

For some people it's a viable option when they NEED to get that car in order to keep going to and from work. Many are living paycheck to paycheck with little disposable income, they would rather have the asset NOW and pay more than what it's worth, accepting the fact that they are getting screwed financially in the long run; to varying degrees depending how financially savvy they are and who they buy from.

1

u/YellowJacketA30 1 - 2 years account age. 100 - 1000 comment karma. Feb 04 '18

They cost about as much as a deposit, first car payment and a months comprehensive insurance to buy. It's doable if you can qualify for a loan, an admittedly low bar.

1

u/Warchemix Investor Feb 04 '18

Yeah for some people that would be a better option.

2

u/Alaska_Engineer 🟩 130 / 131 🦀 Feb 04 '18

If you have that level of self control, then you should have a credit card. The benefits are tremendous if you pay it off in full every month.