If all the banks fail,, will we use sea-shells instead of money?
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904 points
jillybeansisme answered one year ago …
Not all the banks could fail unless, of course, it was the end of the world as a whole. (Although I am no Nostradamis, I don't see that happening anytime soon even with global warming issues.) The reason that all of the banks could not fail is John Q. Public pays the bill one way or another through Federal bail outs such as the recent Fannie May and Freddie Mac.
Now, you might choose to use sea shells as a currency, but then I suspect you would be on a vacation in some tropical island retreat perhaps sipping a mai tai or two . . .
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2082 points
alanj answered one year ago …
No. Banks are privite businesses that loan other people's money to borrowers or pay interest to depositors. They are middlemen between the investor and the borrower.
They do not set the type of currency we use, the Federal government does. They also do not set the value of currency, market conditions do. The Federal government's policies can have an effect on those market conditions.
All banks are not going to fail, but even if they did the deposits are insured by the Federal government (the tax payer). You would still be able to use our current currency. It just wouldn't be located at banks.
And even though 11 banks have gone under this year in the last few months the value of our currency has increased. So, one has very little to do with the other.
951 points
Grudun answered one year ago …
Like Alanj said banks failing will not change the currency. What it IS doing is making money more expensive(despite the fed's attempts to reverse this trend) by increasing the amount of interest charged on loans. This is hurting the economy in general (a higher cost to expand operations making marginal investments unwise) and specific elements such as housing (more than 3 times as hard to get a loan for a home than it was at the start of the housing run up).
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cherry answered one year ago …
read BLADENS Handicraft Economy one of the early economics books in a course I did many years ago.Barter may yet come back into style in our advanced society...lots of undeveloped nations are still using it.We call it trading...commodoties etc. There will always be the moneychangers..maybe not outside the temple gates .The losers deserve to get lost as GREED has got in the way of good judgement and conservative investment and reasonable profit Armagaddon in the banking industry is now acting like a good dose of exlax and about time it cleaned out the system
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