But most of us know not to use Cheque leaves for transaction purposes (You get fined, if you end up encashing a cheque when your balance cannot cover the Cheque amount)

Wow, that sucks. Maybe you should talk to your bank about getting some kind of protection against a check being returned NSF and paying a massive-ass fine.

The bank doesn’t balance your checkbook. You do.

They do fail if there’s not enough balance. There is no overdraft bullshit, if you ask your bank to act that way.

Right but that’s a lot different than the loan being discussed here, which is when the bank capitalizes its own loans via deposits.

Loans don’t increase the money supply, though. They increase monetary velocity.

I’m curious about these places without overdraft fees. How far in the negative do they allow you to go?

None. None negative. They’ll deny the transaction or NSF the check if there’s not enough in the account to cover it.

Loans don’t devalue dollars.

An economic transaction was non-zero-sum and made us both money? You love to see it! Capitalism wins again.

Preem insult, choom

I mean if you did withdraws down below the amount in your account and then paid overdraft fees, who’s fault is that? If you want to spend money you don’t have use a credit card.

then they processed the big one first (even though it was the last) then processed the small ones after and then they didn’t charge one overdraft fee, but multiple.

Yes, as per the explicit terms of your account agreement.

also there is the obvious case of the 2008 financial crisis

Yes, where a lot of people took out loans they knew they wouldn’t be able to repay.

You could just balance your checkbook, maybe

I think it just takes a not particularly reflective cynicism. “Banks actually steal from us” is just an edgelord “good things are actually bad” take.

Every time I’ve put money in a bank, I’ve gotten out more than I put in. Where’s the “robbery”?

Now all of that value truly is gone. Sucks to be my kids I guess.

Why do you think it sucks to be your kids? They inherit a free fancy house and any of your securities that weren’t sold to pay the note.

I mean, it sucks for them that their cool dad is dead, but maybe they take comfort in the fact that you went out doing what you loved (raw dog nutting into bitches.)

But it only moves the problem.

Yes, it moves the problem until after you’re dead, and it moves the problem into the future when the value of your securities will have substantially grown, thereby reducing the real cost of your house. Both of those things are good!

If I borrow against the securities, I get cash. I use that cash. I now have zero cash (again).

You have zero cash plus a property asset. The value of that asset will grow as well. Both the asset and your securities are, in fact, growing in value at an interest rate that’s greater than the interest you’re paying on the loan.

So you’re getting free money. It doesn’t come from nowhere, of course; it comes from the future people who buy your securities. They essentially paid you in the past to buy a house, and they’ll be paid to have done so by people who need to enter the securities market later on (by buying securities.)

Who will pay the debt when I die?

Your estate, via the value of the securities at sale, whose value will have increased in the intervening time. What do you think is the downside, here?

If you’re only going to live another 10 or 20 years but you have $1M stashed… do you take the $1M now and buy a fancy house? Or do you keep that $1M going for the… checks math … few tens of thousands of dollars it’ll earn in yearly dividends?

Borrow against the value of the securities, obviously, like people with actual money do.

Sometimes it’s so obvious that only poors use the internet.

The American consumer is the worst-behaved, most deranged, most thievery-prone they’ve ever been in history. “The customer is always right” thinking is endemic. Roving bands of Karens are straight-up assaulting workers. People want everything for free and figure “gratis” means “loot an entire two-armed carry.” Not to even get started on the fucking shoplifting!

When people abuse a privilege, you take the privilege away, from everyone. It’s pretty simple. If you want a retail experience where you feel privileged and taken care of then you need to be going to places that have some kind of mechanism to keep the hoi polloi away. A membership fee, an unusual location, some kind of barrier to entry.