You left out an important step. When the Bank 1 loans money to Mr. B from Mr. A's deposit, Mr. B is going to SPEND the money - on a house, a business, a farm, or anything - it doesn't just sit in Bank 1. The folks who get the money Mr. B spends can deposit it in Bank 1 or Bank 2 or Bank 454 -...
QUOTE=OohPooPahDoo;4696649]
Your response,"Anyone who knows how banking works.
OohPooP...."I'm not sure what the derivatives position of worldwide financial institutions has to do with fractional reserve banking of depository institutions. Perhaps you can explain that to me, or will you...
"OohPooPahDoo
Registered User
Member #29864 Join Date: May 2011
Location: N'Awlins Mid-City
Posts: 3,158
Thanks: 19
Thanked 246 Times in 210 Posts
Rep Power: 41
Quote: Originally Posted by justaluckyfool
All loans will require 100% deposit backing.
If a bank is...
I believe Ron Paul has it only half right .
Therefore this challenge !
"Believe nothing merely because you have been told it...But whatsoever, after due examination and analysis,you find to be kind, conducive to the good, the benefit,the welfare of all beings -- that doctrine believe and...