The Bitcoin Thread or, How The Fed Is Going To Fuck You

[Montegriffo]

It's happened in the US and now it's happening in the UK. Lloyds Banking Group, which runs Halifax, Bank of Scotland, MBNA and, of course, Lloyds, has banned its customers from buying bitcoin with their credit cards. "We do not accept credit card transactions involving the purchase of cryptocurrencies," a Lloyds Banking Group spokesperson told the Guardian. It's thought to be the first UK bank — or rather, banking chain — to block its members from investing in the cryptocurrency. The worry, presumably, is that people will borrow cash and then be saddled with large amounts of debt they cannot pay back due to Bitcoin's fluctuating value.

https://www.engadget.com/2018/02/05/llo ... n-bitcoin/

It's all over, sell sell sell.

It's common sense. They should not be lending money for gambling.

No it's self interest. Purchases on credit cards are insured against bad products and the banks don't want to be liable for them. No moral judgement involved or I wouldn't be able to gamble online.

[Speaker to Animals]

https://www.engadget.com/2018/02/05/llo ... n-bitcoin/

It's all over, sell sell sell.

It's common sense. They should not be lending money for gambling.

No it's self interest. Purchases on credit cards are insured against bad products and the banks don't want to be liable for them. No moral judgement involved or I wouldn't be able to gamble online.

I am not making a moral claim against gambling. I don't have a problem with gambling. I do have a problem with misery, however, so those banks can burn in Hell for all I care. But in the context of lending.. The lender has a responsibility to wisely manage his capital. Poor capital management harms the rest of the economy and even society for that matter, especially when the lenders fuck it up so badly that they need bail outs to keep the entire economy from imploding.

Lending money to gamblers is not a wise management of capital. They are very likely to lose and be unable to pay.

[Montegriffo]

Why am I still able to use a bank card to literally gamble then? No it is self interest on behalf of the banks.

[Speaker to Animals]

Why am I still able to use a bank card to literally gamble then? No it is self interest on behalf of the banks.

It's their money. I am just saying it's a really bad idea to lend money to gamblers. That shouldn't be a controversial statement.

[Montegriffo]

Why am I still able to use a bank card to literally gamble then? No it is self interest on behalf of the banks.

It's their money. I am just saying it's a really bad idea to lend money to gamblers. That shouldn't be a controversial statement.

That statement could apply to buying shares or even a house. If I borrow money to buy a new car within a year the value of that car will have reduced by up to a third. Should a bank be able to say to me that is a bad investment you can only buy a car that will increase in value?

[Speaker to Animals]

Why am I still able to use a bank card to literally gamble then? No it is self interest on behalf of the banks.

It's their money. I am just saying it's a really bad idea to lend money to gamblers. That shouldn't be a controversial statement.

That statement could apply to buying shares or even a house. If I borrow money to buy a new car within a year the value of that car will have reduced by up to a third. Should a bank be able to say to me that is a bad investment you can only buy a car that will increase in value?

Buying stock: yes.

Buying a house: no.

Secured versus unsecured credit..

[Montegriffo]

The housing market can crash at any time. It is no different from buying shares or bitcoin.
The risk may be smaller but it is still gambling on a purchase where the intrinsic value is set by outside forces. A house valuer does not work out the value of a house based on how many bricks it contains he values it according to market forces.

[TheReal_ND]

Just a correction.

[TheReal_ND]

OH NO NO NO NOOOOOOO

[nmoore63]

Lending a $100 for someone to gamble is a great idea. They are likely to lose and give you the opportunity to juice them.

On the one hand, its all about how much.

Its like the saying goes, someone owes you $100 and can't pay, They have a problem. Someone owes you a $1,000,000 and they can't pay, You have a problem.

BUT most of the mega banks, under our current capital structure, are largely paid to lend money. So their actual profit and lose on a loan is significantly disconnected from their profit and loss as a corporation.