Argonath Bank Financial Crisis

[Teddy]

Hello,

First off: this wasn't planned. It was calculated a few weeks ago that this would come and we put in some extra coding to help mitigate it once it occurred. Based on our new economy concept, no money is spawned into the server other than very limited things which can be explained in RP. Currently, the bank is below the threshold required to keep the bank operating, which is only a few million.

What comes from the bank?

Trucking payment, police payment (both to cops/suspects), fireman payments, paydays (manager)

What goes into the bank?

ATM transaction fees, sales tax, fuel price, suspect take down fine (based on criminal score), other misc fees.

How did this happen?

There was more money coming out than coming in, this is called deficit spending.

Can it get worse?

Yes, if the bank runs under $1m ARD it'll halt payment for services including trucking, police and firemen.

Can it get better?

Yes, we're currently evaluating the economyical situtation for Argonath and going to determine the best route to repair this. This might include tax increases, and reduced funding for certain jobs...

Bailout?

Theodore Enterprise bailed out the bank 3 days ago with an extensive amount of funding, which has already ran out. In RP terms, Argonath is seeking a bail out from external countries. However we need to consider the outcome of doing this.

Can you help?

Yes, /donate will donate funds to the global bank. Once it reaches the threshold it'll reopen.

[brian1996]

I hope I can still access my bank account.

[Marcell]

I'd be glad to help if foreign donations would be possible, seeing as I have 150 millions stashed away on my bank account in Vice City 

[Teddy]

I hope I can still access my bank account.

You cannot access bank accounts, your money is still there just inaccessible as the bank isn't operating as it cannot afford to.

[PulseEffect]

Does /donate take money from hand or from your first bank account?

[Teddy]

Does /donate take money from hand or from your first bank account?

Hand.

[PulseEffect]

your money is still there just inaccessible as the bank isn't operating as it cannot afford to.

How can it "not" afford to? Has the bank been using the money of people's private bank accounts to pay for earnings and such?

[Teddy]

How can it "not" afford to? Has the bank been using the money of people's private bank accounts to pay for earnings and such?

Are you aware of how banking works?

[PulseEffect]

Are you aware of how banking works?

No, I'm not aware of how the bank works, how about you explain it in depth so maybe people can fully understand it.

[Teddy]

No, I'm not aware of how the bank works, how about you explain it in depth so maybe people can fully understand it.

Well I am not going to give out economics lessons for free; but in essence:

1: A customer deposits money into the bank
2: The bank lends that money to generate revenue (via loans and other methods)
3: The bank keeps some, and returns the value plus extra (from interest) to the customer.

This is how all banks around the world fundamentally survive. They don't stash your money under lock and key with your name on it, they use it to earn more money.. this is why you earn interest.. as a "reward" for letting them use your money.

[PulseEffect]

I think you may of misunderstood my question, I know how banking works, not how the Argonath Banking system works but w/e.

Well I am not going to give out economics lessons for free; but in essence:

1: A customer deposits money into the bank
2: The bank lends that money to generate revenue (via loans and other methods)
3: The bank keeps some, and returns the value plus extra (from interest) to the customer.

This is how all banks around the world fundamentally survive. They don't stash your money under lock and key with your name on it, they use it to earn more money.. this is why you earn interest.. as a "reward" for letting them use your money.

The only way banks earn money is if there is constantly money going into them, an economic model would say that firms give individuals money but in Argonath, the central government through its bank is giving the money, how can anyone get money if the government has no way to give money? How would anyone be able to help bail out the bank if all their money is in the bank? Earnings will always be greater then returns to the state bank, I doubt anyone would actually want to donate from hand when they've just earned that money as well as be unable to retrieve their money from the bank. Assuming that there is interest, Argonath Bank would be pulling money out of people's accounts with interest, this interest obviously accumulates... how can you except an economy to run off a single supply of money, there has to be a way to inject money through RP methods (foreign investment or foreign government loaning, etc..).

As well as trying to revive the bank, how would it be achieved, everyone's money is in their bank accounts mainly.. I doubt most people actually carry their cash onhand. In order to bail out the bank you would literally have to get everyone who has cash ohand that was before the financial crisis to bail out the bank as well as a complete halt to earnings/a situation where there is more money going into the bank than coming out. I see very little hope for the state bank to be revived by such methods.

[Teddy]

How much reading on HowItworks did you have to do to formulate that reply?

There is much more comprehension involved in generating revenue streams (rply foreign investments etc), which we have already done. The problem is not where, but how much and ensuring that it's a balance and not just plain rigging. When later systems come in, importation will as well factor (including taxation of imports).

and don't get me wrong, the system is flawed.... I point this out very early on and was essentially told to just go with it. We have too realistic of a goal for an economic model without the needed elements to support such a model. This is largely due to how this is a game and not real life... it's hard to create a life-like economic system without the elements available within real world economic systems. This has always been a problem.

[Stivi]

Are loans working properly ?
Do the money coming from license purchases and dealerships going to the bank ? Is there an emergency tax ?

[Marcel]

Have you been eating moussaka while scripting this? This smells like Greece

[Sawyer]

We, Greeks, are cursed. There is no other explanation. We cannot even avoid being bankrupt in a freakin' game.