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What fresh hell is this?

In the process of doing so they entirely missed the point that without deposits, a bank has no meaning. Holding deposits is it essential purpose.

Two weeks back we were being told that banks don’t even need deposits. Now they’re the very purpose of them?

The name for something that simply holds deposits is “a safe”.

Both resonate with me. I will never be the world’s greatest theoretician. I might not even be an outstanding theoretician. But I think I hear the music of political economy, without the need for any ‘ism’ but pragmatism, tinged with empathy. The condition of the person dismissed too often as ‘ordinary’ is what matters to me, and not the promotion of any ideology.

He’s now declaring himself to be the Mozart of political economy. Ho Hum.

11 thoughts on “What fresh hell is this?”

  1. “I might not even be an outstanding theoretician.”

    Of course you are outstanding, old horse. Outstandingly dim and ignorant.

  2. The condition of the person dismissed too often as ‘ordinary’ is what matters to me, and not the promotion of any ideology.

    Unless that ordinary person:

    – Opposes the EU-
    – has reservations on immigration levels
    – Thinks the Trans Agenda might be harmful
    To children
    – is Sceptical about Climate Change

    He couldn’t give a fig about the ordinary man – indeed the notion is so ludicrous you half assume it has to be satirical

  3. This exchange is quite lovely from the ever amenable Murphy.

    He is, as he’s never shy in pointing out, a “Chartered Accountant” and is currently a “Professor in Accounting Practice”. Given that background, it’s staggering that he would post these comments. He’s quite mental.

    Andy Boyd says:
    February 10 2024 at 10:10 am
    “But we don’t say banks are in debt because they also owe the money saved with them back to depositors.”

    Actually we do. Deposits are listed on a banks balance sheet as liabilities, along with other debts such as commercial borrowings and bond debts. Deposits are usually the largest single item in the list of a banks’s liabilities.

    +3
    Reply
    Richard Murphy says:
    February 10 2024 at 12:28 pm
    Politely, stop talking drivel

    Capital is also a credit on the balance sheet. That does not mean we describe it as debt.

    We describe deposits as deposits

    If you don’t know what you are talking about don’t say it, I suggest

    +10
    Reply
    Andy Boyd says:
    February 10 2024 at 1:10 pm
    So why does HSBC (to take a random example) show ‘Customer accounts’ as the single largest liability on its 2022 Balance Sheet? Over $1.5tn in deposit liabilities out of total liabilities of $2.7tn?

    HSBC 2022 accounts here: https://www.hsbc.com/investors/results-and-announcements/annual-report

    Page 328.

    0
    Richard Murphy says:
    February 10 2024 at 1:52 pm
    I am a chartered accountant. I know a balance sheet. I have explained the double entry of banks here many times. Politely, you can’t teach me anything in the subject.

    And you (like all trolls) completely miss the point. HSBC see deposits as a strength. They are. They do not see them as a threat. So my question was why don’t government when all they do is provide a banking facility? Now answer that question. In detail.

    Or, shut up.

  4. Martin Near The M25

    “The condition of the person dismissed too often as ‘ordinary’ is what matters to me”

    And how to make it a lot worse.

  5. Look, I’m just a dumb engineer. I vaguely remember how balance sheets work. But correct me if I’m wrong (please!), the difference between a bank holding a lot of deposits and doing something with that money to get a return versus government borrowing money for recurrent spending is that there is no income stream to cash out those “savings” on demand? Other than tax and arguments about multipliers I suppose.

    I’m not across the technical details, but something about his arguments just confuse me. I mean, you borrow money, you should pay it back, yes? It’s a debt.

  6. If he hadn’t blanket banned all my sockpuppets, I’d…. well, no I just can’t be bothered.

    More and more he’s like that drunk on my bus last night who kept insisting on a ticket to XXX, and the driver kept telling him “You’re already in XXX”. The brain cells have just expired, not only is reasoning beyond him, *communicating* is beyond him.

  7. “But I think I hear the music of political economy, without the need for any ‘ism’ but pragmatism, tinged with empathy.”

    For some reason, my thoughts turned to Florence Foster Jenkins.

  8. If Greta Thunberg can see carbon dioxide then why shouldn’t Captain Potato hear the music of political economy whistling like a billowy miasma through the hallowed sanctum of Elynomics? More Shostakovich than Mozart.

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