Fulltilt owners pocketed $500million...

Quote:

---

Originally Posted by 5thmardiv

Banks do NOT operate on a fractional system.

---

Seriously, where did you get this information? What is your background in economics? If banks didn't operate on a fractional reserve system, they would not be able to make any money, since every dollar lent to them by customers would have to be simply put into a vault for safekeeping. They would merely be a large storage vault for customers. The banks would make no money and the customers would make no interest (since a bank cannot pay interest if it isn't allowed to use the deposits to make any money of its own).

Are you familiar with the term money multiplier? What about leverage? This is how banks make money. How do you think banks make their money?

Also, what do you call it if a bank "borrows" up to 40% of deposits? That would be a fractional reserve system with a reserve ratio of 60%. Of course, no bank operates under a 60% reserve ratio; the very notion is absurd. I don't know where you are getting your information.

Im not sure why we are calling FTP a Ponzi Scheme either, Media uses words like that to make the situation sound more dire than it really is.

[ ] U.S. Interference is the sole reason FTP is where it is today.
[x] The decision to 'credit' players accounts when they were not receiving funds and other mismanagement is to blame.

Obv, proven by stars.

Quote:

---

Originally Posted by FrankJones

How do you think banks make their money?

---

Everyone knows little gnomes in their safe's take our money and clone it. duh...

Step 1: Stick money in vault.
Step 2: ?????
Step 3: Profit.

The US is claiming that the finances worked like a ponzi scheme, outside of the real meaning of a Ponzi scheme where investors are promised high returns with little risk while they are paid out with new investment money. They are claiming that anyone who requested funds from full tilt had to wait for full tilt to have the funds to get paid out....which is why in many cases it would take weeks to get funds (depending on how much you were requesting). Anyone who claims that Full tilt had the funds to properly pay back all the accounts before the Feds shut them down is DREAMING!!! By the way, I do work for the banks and fully understand how they operate. Just like you claim that Full tilt was not a true ponzi scheme, I am saying that the banks are not a true fractional system. It's all in the way you want to swing the terms around. However, I think we can all say that your money was always safer in the banks then with Full tilt or any of the other sites. You would think with the amount of money flowing through FT this would not be an issue......but then again, 440 million is what is reported as being paid out to the crooks...when it will reveal that this was their own cash piggy bank which at any given moment would have crashed if enough people withdrew their funds!

Banks use the term leverage/ing, and hedging. Banks make most of their money by charging fees, mergers and acquisitions, IPO's and by many different types of trading via investment, government bonds, commodities and many more things that banks were never really set up to do. Banks do not make much off from most peoples checking accounts as most people are living pay check to pay check. Who really has a ton of money in a bank saving account? No one as the % is absurd, so one might buy a CD which is still stupid but safe to the FDIC insured max.

3 pages of arguing what it should be called and for some reason bank comparisons. Why dont we compare ftp to its competitor the one that shipped funds back right away, and did actually segregate the money. Who cares what they call it they stole players money and need to pay for it.

Quote:

---

Originally Posted by HC28:114092

3 pages of arguing what it should be called and for some reason bank comparisons. Why dont we compare ftp to its competitor the one that shipped funds back right away, and did actually segregate the money. Who cares what they call it they stole players money and need to pay for it.

---

Well said.

Quote:

---

Originally Posted by Shoecrew22

Im not sure why we are calling FTP a Ponzi Scheme either, Media uses words like that to make the situation sound more dire than it really is.

[ ] U.S. Interference is the sole reason FTP is where it is today.
[x] The decision to 'credit' players accounts when they were not receiving funds and other mismanagement is to blame.

Obv, proven by stars.

---

Nick- Yes, Full tilt credited players' accounts when it wasn't receiving funds, but the reason Full Tilt was not receiving funds is the interference of the U.S. government!

If the U.S. government hadn't started interfering with Full tilt's ability to withdraw money from people's bank accounts and credit cards, Full Tilt likely would not have had a problem.

Quote:

---

Originally Posted by 5thmardiv

The US is claiming that the finances worked like a ponzi scheme, outside of the real meaning of a Ponzi scheme where investors are promised high returns with little risk while they are paid out with new investment money. They are claiming that anyone who requested funds from full tilt had to wait for full tilt to have the funds to get paid out....which is why in many cases it would take weeks to get funds (depending on how much you were requesting). Anyone who claims that Full tilt had the funds to properly pay back all the accounts before the Feds shut them down is DREAMING!!! By the way, I do work for the banks and fully understand how they operate. Just like you claim that Full tilt was not a true ponzi scheme, I am saying that the banks are not a true fractional system. It's all in the way you want to swing the terms around. However, I think we can all say that your money was always safer in the banks then with Full tilt or any of the other sites. You would think with the amount of money flowing through FT this would not be an issue......but then again, 440 million is what is reported as being paid out to the crooks...when it will reveal that this was their own cash piggy bank which at any given moment would have crashed if enough people withdrew their funds!

---

A bank operates under a fractional reserve system in any and all senses of the term. I am rather shocked that we are even debating this.

Also, full tilt is nothing like a Ponzi scheme in any way.

Social Security, on the other hand .......

Quote:

---

Originally Posted by HC28

3 pages of arguing what it should be called and for some reason bank comparisons. Why dont we compare ftp to its competitor the one that shipped funds back right away, and did actually segregate the money. Who cares what they call it they stole players money and need to pay for it.

---

Didn't the U.S. seize a huge amount of the money? Why hasn't the U.S. repaid this money to the players? I suppose it is okay for the U.S. to steal money, since it does so all the time and few people complain.