• 3 Posts
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Joined 3 months ago
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Cake day: March 28th, 2024

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  • Holy shit. I get it! That’s a great explanation and I really appreciate your taking the time to type it all out. I’m glad we don’t have Lemmy medallions to award but, if we did, I’d give you one. I now see how a 100% reserve requirement, i.e., all deposits completely backed in cash, would entirely change banking.

    The only thing that feels weird to me is the virtual money the bank creates doesn’t seem go away once it’s paid back. For example, if a mini bank only had $1000 and lent $900 with a 10% reserve, they’d end up with $1900 once the loan is repaid (ignoring interest). Or does the $900 they lent create a -$900 for the bank that is cancelled through repayment?


  • I’ve been thinking about it and it still doesn’t make sense. I’m a scientist, not an economist, so it’s wildly out of my wheelhouse. Would you mind pointing me in the right direction?

    Here’s where I’m hung up. Let’s assume a 10% fractional reserve and, for the sake of simplicity, just one bank and a dramatically simplified deposit/loan scenario, just to minimize the number of hypothetical people and transactions.

    Person A deposits $1000. Bank lends $900 to person A which is sent to Person B.

    Person B deposits $900. Bank lends $810 to person B which is sent to Person C.

    Person C deposits $810. Bank lends $729 to person C which is sent to Person D.

    Person D deposits $729. Bank lends $656 to person D which is sent to Person E.

    Let’s stop there. So we have one initial deposit of $1000, which has resulted in an additional $2,493 in deposits ($3,493 in total) and $3,095 in loans. The bank is now receiving payments, plus interest, on over 3x the amount of actual money it was actually given. To me, it seems like the bank is figuratively “printing money” and gaining interest on it. Nothing I’ve read on fractional reserve lending has suggested this is incorrect.

    Halp!






  • While it’s all fine and good to just say “hire the right people”, that’s a gross oversimplification. Those people became “right” through time and dedication, which led to experience. Not every employee will be a “right person” and none of them started out as one. Also consider that not every manager is a “right person”, so making SMART goals protects you from their managerial inadequacy.

    SMART lays out how to both set and receive tasks, goals, assignments, etc., that are clearly defined. A goal lacking in one or more of these elements is what is commonly referred to as a “shitty goal”. Why? I’ll lay it out using the acronym from the perspective of an employee, plus an example for each of what can happen when that information is missing.

    Specific: what does my boss actually want from me?
    Converse - I completed the wrong task.

    Measurable: how do I prove I did the task and how well it was done?
    Converse - I did great work but can’t prove to the client how great it is.

    Achievable: can the task actually be done with the time, knowledge, and resources available?
    Converse - I agreed to complete a task which turned out to be impossible given our resources.

    Relevant: how does the task relate to the job/project/etc?
    Converse - I completed an unnecessary task. Now I have to work even more to undo it and complete what actually does need to be done.

    Time: when does this need to be done by?
    Converse - I completed the task after it was needed, putting the project behind.

    If you’re missing any of those parameters, you’re either not giving your people enough information or they aren’t asking enough questions. I’d love to hear how work can be consistently done well if any of that is missing.

    Those “right people” you mentioned are likely already incorporating these elements into communications with you. Dare say that makes them… SMARTer than you? Heyo!


  • I feel that. There’s a lot of smug superiority online in general, where people seem to think that someone being incorrect about something is an invitation to insult them, and where the harder you insult them, the better. It’s sad. I blame television to some extent. TV shows and movies love to portray tough conversations ending with some sort of hard but true emotional jab that snaps the other person into understanding. Total bullshit, that rarely works in real life.

    I’ve taken to politely calling them out and questioning the rationale behind their behavior. That’s what someone did to me about twenty years back and it helped me get my ass in line. I’m hoping it’ll do the same for a few of them. As the least, I know who to block if their response is just as nasty. My block list is long but my time here is much more peaceful!


  • Let’s talk this out. Not the biochemistry aspect, but the smuggery.

    Was their post smug? Yes. Factually incorrect? Also yes - I’m a microbiologist, I took my share of biochem courses.

    Your response was equally smug as well as condescending. Their comment was wrong but innocent in its intent. Yours, conversely, intended to disparage their comment and them as a person.

    What do you intend to gain here? Not with the correction - that is valid, but it’s entirely possible to correct without being smug, condescending, and denigrating. What do you think that adds to the conversation that a simple, polite correction would lack?