[Suggestion] Make Banks Allowed (DENIED)

Yes that is what hes saying, and I'm saying if the moderator went through the trouble to make an entire post why its a bad idea, it probably will not happen. Rules generally exist for a reason.

I made suggestions on how to fix the reasons why banks aren't allowed I clearly saw the post...

And the post clearly exists. You talk as if the moderator just created the thread without even conceiving of any possible solutions. The moderators put a lot of thought into the posts they make. There is no reason to assume because you thought of a "solution," which was already shown to be at least partway flawed for the loans part, that the rules would suddenly be changed.

I made some suggestions, I thought would work, there is no problem and I don't see what the big deal is.

There's one

And another

Banks? No, there's no point.
Corporations? Yes, but we have too small an active economic community to carry out properly.

This is closer to a pawn shop.

This argument is sooooo pointless.. It would never work, as we have seen in the past.

Banks aren't allowed period for the reason other staff members have given and past incidents. The last few paragraphs caught my eye. Emc staff is here for a reason to help members. Your telling or really encouraging players to scam knowing that good chance they might get away with it if you don't make proper documentation.

Well as someone who encourages automated systems of banking to be allowed (just read some of the other 'bank' threads out there)
I personally find this a bit... too risky.
Now I am sure someone might actually just use it to become a banker, but there are too many people out there who will abuse the system.

Thus why I think you should need a permit from staff.

Staff, are pawn shops allowed?

The only thing they might accept is CONSLE banks. For allowing someone to keep their items there's /vault so it's useless

My god..... When are you just going to give up?

In terms of a real world economy, the main purpose banks serve is to redistribute capital surpluses (your savings, or, to a lesser extent, the money in your current account) to those who have capital deficits (not enough money to get something done) in the form of loans.

In EMC, however, the conditions are different:
- it is easier to accumulate capital due to reduced property rights, decreasing the need for loans and savings accounts
- the bankers are not trusted individuals whose activities are heavily regulated by government authorities, they are strangers on the Internet who are unchecked by Staff

In real life, it is quite difficult to earn money, because land, a factor of production, is almost completely privatised; it is rare that a plot of land will not have an owner. In EMC, this is quite the contrary; we have virtually unlimited tracts of land which are subject to no property rights, out in the Wastelands. Hence, anyone can make a living for themselves by going out and mining. Many goods also require extremely little factor resources; around 10 Oak Logs can be produced with 1 sq metre of land, 2 minutes of labour, a fraction of the capital provided by your daily bonus to buy the sapling, and very little enterprise, you just go to a shop and right click a sign. Capital is extremely abundant; as a result, banks are not needed.

Not only are banks not needed, they are very risky, as we've established in this thread. To offset this risk and even begin to compete with the capital reserves provided in EMC, interest rates for savings accounts would need to be ridiculously high, and loaning rates would need to be ridiculously low. And believe me, paying savings account holders huge amounts and paying those you lend to very little is a pretty awful business strategy.

As we can see, the rule against banks on EMC is not merely in the interest of individual users, it is in the interest of the market. Setting up a bank is a huge risk, because it is extremely unlikely you will find a way to compete with the capital reserves available on EMC and still keep the business profitable. By having this rule in place, we are stopping naive noobs who don't even economics from taking this foolish risk.

The closest thing to a bank which would work on EMC would be a system where you set up a lottery, with refundable tickets which are valid for every draw. You could then invest most of the money bar a reasonable reserve in whatever you think will make money, be it an illiquid good (like diamonds or beacons) which you believe will rise in price in the future, or perhaps you could use the money as capital to buy stock for your shop. This would incentivise some degree of risk taking because the capital would be more readily available, and it would be unlikely that you will need to pay a refund you cannot afford (assuming you keep ample reserves).

A shop where you take a look at an item or items, put a value on it, then purchase it if the owner wants? Sounds legal to me.

Too difficult to verify trustworthiness.

If anyone has any questions, I can answer.

I think pawn shops are just item banks... Unless it's more buying and selling and less "let me just hold on to your Orebuster."

That isn't what a pawn shop is. I guess that is the way the tv shows portray them but the real purpose of a pawn shop is to take an item as collateral for a loan of much lower value than the item. Then the person has an arbitrary time (say 90 days) to pay off the loan or the item becomes the pawn shops to do with as they please.

It has basically all of the same problems on EMC as a bank would. But it isn't a bank.

Ah, the item acts as a deposit? Nope, that wouldn't work.

Volt said no. That is something. Take it and run.

The guy speaks the truth. Run now; you may be able to escape the wrath of the gods of economics if you are quick enough.