The Instigator
Sgraf
Pro (for)
Tied
0 Points
The Contender
htedrom
Con (against)
Tied
0 Points

Should the banking system be changed?

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Voting Style: Open Point System: 7 Point
Started: 3/21/2011 Category: Economics
Updated: 6 years ago Status: Post Voting Period
Viewed: 1,051 times Debate No: 15524
Debate Rounds (3)
Comments (4)
Votes (0)

 

Sgraf

Pro

I believe that the current banking system within the United States is causing more problems than it is helping to resolve. Specifically I would like the debate to be about whether or not the banks should only have to hold a minimum amount of the deposits that are made to them. Banking institutions currently with less than 10.7 million dollars in transactions are not required to hold any of the deposits as reserve amounts, institutions with between 10.7 million and 55.2 million must only keep 3% percent of the deposits made, and institutions with over 55.2 million dollars must only keep 10%. This allows banks to loan out the money that has been deposited into there accounts and charge interest on these loans. I would like to argue that these percentages need to be raised up to at least double what they are now in order to better protect the customers of these banks in the event that a mad rush occurs and the banks begin running out of money.
htedrom

Con

Hi! Not sure if this is frowned on, but I actually do think you're right (however, for different reasons than you present), and I'll be playing devil's advocate.

I intend to argue that the current reserve ratio's do not present a systemic risk of bank runs or financial instability.

Furthermore, I may be reading this wrong, but it's my understanding that the Pro position is hinting that bank reserves were the cause of the recent financial instability (please let me know if I'm wrong here), a position I would happily debate!

Good luck!
Debate Round No. 1
Sgraf

Pro

Sgraf forfeited this round.
htedrom

Con

well that was anticlimactic.
Debate Round No. 2
Sgraf

Pro

Sgraf forfeited this round.
htedrom

Con

htedrom forfeited this round.
Debate Round No. 3
4 comments have been posted on this debate. Showing 1 through 4 records.
Posted by Intellectual_Perplexion 6 years ago
Intellectual_Perplexion
haha glad you like it.
Posted by htedrom 6 years ago
htedrom
that moon analogy on the Fed is awesome, and I'm going to steal it
Posted by Intellectual_Perplexion 6 years ago
Intellectual_Perplexion
I wish you luck Pro.

Praising the Federal Reserve for ‘bringing stability' after crises and bubbles is like praising the moon for bringing high tide after low tide; it's responsible for both.
Posted by mcc1789 6 years ago
mcc1789
Do you want to debate fractional reserve banking in general, or simply that current reserves are not enough to protect customers?
No votes have been placed for this debate.