MaggieMae
Reality bits
- Apr 3, 2009
- 24,043
- 1,635
- 48
Yeah, it can. Happens every time someone takes out a loan from a bank.
nice selective quote. what you said wouldn't happen if you didn't have the fed reserve.
Uhhh, no. Banks have made loans almost since their inception, thus creating money "out of thin air". The Federal Reserve didn't invent the loan.
Until the great recession of 2008 caused by the collapse of big banks, they were required to have collateral assets to back up loans. They didn't, and there you have the answer to "what happened" in a few short words.