<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>nicobn</author><text>You do not understand central banking at all.&lt;p&gt;Banks do not create money out of thin air: central banks do. Through loans to charter banks and bond purchases, the Federal Reserve creates (or destroys) money whenever the internal one day inter-bank loan market interest rate is above (or below) a certain guideline (the &amp;quot;interest rate&amp;quot;).&lt;p&gt;On the other hand, if I deposit $100.00, the bank is allowed to loan a certain percentage of it to someone else. That is fractional reserve banking. Let&amp;#x27;s say the bank operates with a 2% reserve. I deposit $100.00, they loan $98.00 to Johnny. A naive understanding of the system would lead you to think that the bank &amp;quot;created&amp;quot; $98.00 because the sum of the balances of yours and Johnny&amp;#x27;s bank account is $198.00; it did not. If Johnny doesn&amp;#x27;t pay his loan back, they&amp;#x27;re out $98.00. Your deposit is a liability for the bank. The loan is an asset. So in this situation, the bank has $100.00 in liabilities, $98.00 in assets and $100.00 in reserve.&lt;p&gt;When too many people don&amp;#x27;t pay their loans back, you have a bank run. Part of the reason the Federal Reserve system exists is to avoid this situation by allowing the banks to borrow from a lender of &amp;quot;last resort&amp;quot; if this were to happen.</text><parent_chain><item><author>Kinnard</author><text>Banks don&amp;#x27;t actually borrow the money. They create it. The fact that people don&amp;#x27;t understand and are completely unaware of this is THE problem with the banking system:
&lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;www.theguardian.com&amp;#x2F;commentisfree&amp;#x2F;2014&amp;#x2F;mar&amp;#x2F;18&amp;#x2F;truth-money-iou-bank-of-england-austerity&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;www.theguardian.com&amp;#x2F;commentisfree&amp;#x2F;2014&amp;#x2F;mar&amp;#x2F;18&amp;#x2F;truth-m...&lt;/a&gt;</text></item><item><author>oneJob</author><text>Banks aren&amp;#x27;t scary, they&amp;#x27;re a-hole dinosaurs. Banks epitomize centralized authority and regulation. Banks borrow money for less than they lend it effectively guaranteeing a profit if properly and concervatively managed, and yet they have recently and repeatedly failed. In the process they have inflicted enormous harm to our economy and lives, but they have not shared a proportionate share of the costs. The costs they impose hardly justify the veritable monopolies banks are afforded by the laws and regulations which are very effective at preventing competitors from entering the market.&lt;p&gt;Now consider where the tyical HN reader comes down on these issues. So yeah. Not a lot of love for banks.</text></item><item><author>civilian</author><text>Here&amp;#x27;s the press release (pdf): &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;static1.squarespace.com&amp;#x2F;static&amp;#x2F;55f73743e4b051cfcc0b02cf&amp;#x2F;t&amp;#x2F;55f8119ce4b0550fcc16d156&amp;#x2F;1442320796627&amp;#x2F;PRESS+RELEASE+Global+banks+form+partnership+with+R3+-+FINAL.pdf&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;static1.squarespace.com&amp;#x2F;static&amp;#x2F;55f73743e4b051cfcc0b02...&lt;/a&gt;&lt;p&gt;This sounds exciting. My gut reaction was that the banks aren&amp;#x27;t going to use it for actually transferring money, but as a way to notarize transactions that will be acknowledged by the whole group. It does sound like a cool way to verify everything going on among a network of players.&lt;p&gt;And there&amp;#x27;s a lot of weird hate towards bank on HN. I know they&amp;#x27;re not great, but it&amp;#x27;s really not helping the conversation to just say things like &amp;quot;woooo banks are scary!&amp;quot;&lt;p&gt;&amp;#x2F;&amp;#x2F;edit: A key quote from the press release:&lt;p&gt;&amp;gt; &lt;i&gt;The group will collaborate on research, experimentation, design, and engineering to help advance state-of-the-art
enterprise-scale shared ledger solutions to meet banking requirements for security, reliability, performance,
scalability, and audit.&lt;/i&gt;&lt;p&gt;It&amp;#x27;s a shared ledger system!  So, really no need to have it be bitcoin. It does make sense.  It&amp;#x27;ll be great to see the confused looks on lawyer&amp;#x27;s faces when they try to lobby to change the blockchain history.</text></item></parent_chain></comment><story><title>Nine of the World’s Biggest Banks Form Blockchain Partnership</title><url>https://recode.net/2015/09/15/nine-of-the-worlds-biggest-banks-form-blockchain-partnership/</url></story>
<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>bduerst</author><text>You&amp;#x27;re confusing private banks with central banks.  I don&amp;#x27;t think anyone is surprised that the U.S. Fed reserve regulates the money supply in part by creating it.</text><parent_chain><item><author>Kinnard</author><text>Banks don&amp;#x27;t actually borrow the money. They create it. The fact that people don&amp;#x27;t understand and are completely unaware of this is THE problem with the banking system:
&lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;www.theguardian.com&amp;#x2F;commentisfree&amp;#x2F;2014&amp;#x2F;mar&amp;#x2F;18&amp;#x2F;truth-money-iou-bank-of-england-austerity&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;www.theguardian.com&amp;#x2F;commentisfree&amp;#x2F;2014&amp;#x2F;mar&amp;#x2F;18&amp;#x2F;truth-m...&lt;/a&gt;</text></item><item><author>oneJob</author><text>Banks aren&amp;#x27;t scary, they&amp;#x27;re a-hole dinosaurs. Banks epitomize centralized authority and regulation. Banks borrow money for less than they lend it effectively guaranteeing a profit if properly and concervatively managed, and yet they have recently and repeatedly failed. In the process they have inflicted enormous harm to our economy and lives, but they have not shared a proportionate share of the costs. The costs they impose hardly justify the veritable monopolies banks are afforded by the laws and regulations which are very effective at preventing competitors from entering the market.&lt;p&gt;Now consider where the tyical HN reader comes down on these issues. So yeah. Not a lot of love for banks.</text></item><item><author>civilian</author><text>Here&amp;#x27;s the press release (pdf): &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;static1.squarespace.com&amp;#x2F;static&amp;#x2F;55f73743e4b051cfcc0b02cf&amp;#x2F;t&amp;#x2F;55f8119ce4b0550fcc16d156&amp;#x2F;1442320796627&amp;#x2F;PRESS+RELEASE+Global+banks+form+partnership+with+R3+-+FINAL.pdf&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;static1.squarespace.com&amp;#x2F;static&amp;#x2F;55f73743e4b051cfcc0b02...&lt;/a&gt;&lt;p&gt;This sounds exciting. My gut reaction was that the banks aren&amp;#x27;t going to use it for actually transferring money, but as a way to notarize transactions that will be acknowledged by the whole group. It does sound like a cool way to verify everything going on among a network of players.&lt;p&gt;And there&amp;#x27;s a lot of weird hate towards bank on HN. I know they&amp;#x27;re not great, but it&amp;#x27;s really not helping the conversation to just say things like &amp;quot;woooo banks are scary!&amp;quot;&lt;p&gt;&amp;#x2F;&amp;#x2F;edit: A key quote from the press release:&lt;p&gt;&amp;gt; &lt;i&gt;The group will collaborate on research, experimentation, design, and engineering to help advance state-of-the-art
enterprise-scale shared ledger solutions to meet banking requirements for security, reliability, performance,
scalability, and audit.&lt;/i&gt;&lt;p&gt;It&amp;#x27;s a shared ledger system!  So, really no need to have it be bitcoin. It does make sense.  It&amp;#x27;ll be great to see the confused looks on lawyer&amp;#x27;s faces when they try to lobby to change the blockchain history.</text></item></parent_chain></comment><story><title>Nine of the World’s Biggest Banks Form Blockchain Partnership</title><url>https://recode.net/2015/09/15/nine-of-the-worlds-biggest-banks-form-blockchain-partnership/</url></story>