6 ms·

Google to delay portion of staff bonus

17 points by panda88888 4y ago

nullish_signal 4y ago
80% now, 20% months later? Reminds me of Fractional Reserve Banking, where USA federal banks could invest 90% of deposited money, leaving only 10% of your savings "in savings". I just looked it up, and this seems to have dropped from 10% to 0% on March 15,2020, which "eliminated reserve requirements for all depository institutions" https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm Perhaps this explains the problems people have been having with Bank of America and being unable to withdrawal their money/paychecks. The money is no longer at the bank!
- raincom 4y ago
  That thinking is based on the thesis that deposits create loans. However, it is the other way: loans create deposits.
- jakehansen 4y ago
  Is there an easy way to understand how the lack of a reserve requirement doesn't turn banks into infinite money machines? Edit: Perhaps banks are infinite money machines, but what consequences do banks face that prevent them from writing blank checks?
  - nullish_signal 4y ago
    Consequences? Those are for Plebeians, since the Federal Reserve can just print more money. From 2020: "Inflation Baked In As U.S. Money Supply Explodes" https://www.forbes.com/sites/investor/2020/06/26/inflation-baked-in-as-us-money-supply-explodes/?sh=27f7f0ed7829 https://www.forbes.com/sites/investor/2020/06/26/inflation-b... "A 33% increase in M1 (the most liquid portions of the money supply) in the last 12 months. A 105% increase (if you annualize it) in the last three months to May. You’d say that’s a 33% inflation rate baked in, right now."
  - totony 4y ago
    They have eliminated reserve requirement, but there still are capital requirements.
- seanhunter 4y ago
  This really is nothing to do with and nothing like fractional reserve banking, and fractional reserve banking really is nothing like how it is frequently described on the internet in breathless tones. For people who are genuinely serious about understanding capital requirements for banks, I strongly recommend reading the Basel framework[1]. It’s not going to set your pulse racing but at least you won’t be recycling some “explanation” that has been made up by someone who doesn’t understand it themselves. And in point of fact as a sibling comment has pointed out, eliminating reserve requirements for deposits doesn’t eliminate capital requirements, which banks still have and are still in place. [1] https://www.bis.org/basel_framework/index.htm https://www.bis.org/basel_framework/index.htm
- unmole 4y ago
  Do yourself a favour and learn about how banks actually work: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...
nigrioid 4y ago
The entire financial system is in much worse shape than anyone could imagine.
granshaw 4y ago
Right now google could do antics like this and much more, and their employees would still stay… and they know it
- shmageggy 4y ago
  There are no antics. It's just to manage shifting the date without having a period with 15 months between bonuses. This is total non-news.
  - MagicMoonlight 4y ago
    Cutting your current pay and then paying you it in a few months doesn’t change that… it’s just stretching the same pay out over longer
deleted 4y ago
[deleted]

17 points by panda88888 4y ago

80% now, 20% months later? Reminds me of Fractional Reserve Banking, where USA federal banks could invest 90% of deposited money, leaving only 10% of your savings "in savings". I just looked it up, and this seems to have dropped from 10% to 0% on March 15,2020, which "eliminated reserve requirements for all depository institutions" https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm Perhaps this explains the problems people have been having with Bank of America and being unable to withdrawal their money/paychecks. The money is no longer at the bank!

raincom 4y ago
That thinking is based on the thesis that deposits create loans. However, it is the other way: loans create deposits.
jakehansen 4y ago
Is there an easy way to understand how the lack of a reserve requirement doesn't turn banks into infinite money machines? Edit: Perhaps banks are infinite money machines, but what consequences do banks face that prevent them from writing blank checks?
- nullish_signal 4y ago
  Consequences? Those are for Plebeians, since the Federal Reserve can just print more money. From 2020: "Inflation Baked In As U.S. Money Supply Explodes" https://www.forbes.com/sites/investor/2020/06/26/inflation-baked-in-as-us-money-supply-explodes/?sh=27f7f0ed7829 https://www.forbes.com/sites/investor/2020/06/26/inflation-b... "A 33% increase in M1 (the most liquid portions of the money supply) in the last 12 months. A 105% increase (if you annualize it) in the last three months to May. You’d say that’s a 33% inflation rate baked in, right now."
- totony 4y ago
  They have eliminated reserve requirement, but there still are capital requirements.
seanhunter 4y ago
This really is nothing to do with and nothing like fractional reserve banking, and fractional reserve banking really is nothing like how it is frequently described on the internet in breathless tones. For people who are genuinely serious about understanding capital requirements for banks, I strongly recommend reading the Basel framework[1]. It’s not going to set your pulse racing but at least you won’t be recycling some “explanation” that has been made up by someone who doesn’t understand it themselves. And in point of fact as a sibling comment has pointed out, eliminating reserve requirements for deposits doesn’t eliminate capital requirements, which banks still have and are still in place. [1] https://www.bis.org/basel_framework/index.htm https://www.bis.org/basel_framework/index.htm
unmole 4y ago
Do yourself a favour and learn about how banks actually work: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...

nigrioid 4y ago

The entire financial system is in much worse shape than anyone could imagine.

granshaw 4y ago

Right now google could do antics like this and much more, and their employees would still stay… and they know it

shmageggy 4y ago
There are no antics. It's just to manage shifting the date without having a period with 15 months between bonuses. This is total non-news.
- MagicMoonlight 4y ago
  Cutting your current pay and then paying you it in a few months doesn’t change that… it’s just stretching the same pay out over longer

deleted 4y ago

[deleted]