Bankruptcies rising. Fed answer? More debt.

[Toddsterpatriot]

Banks lost money, and nearly failed, because of crappy mortgages, not because of anything Glass-Steagall had previously prevented.

They would have lost money. They wouldn't have lost other people's money.

They would have lost depositor's money. On bad mortgages.

You can continue to ignore what I said if you want.

I will continue to point out your errors.

They would have lost money. They wouldn't have lost other people's money.

How much money that a bank loans out is not "other people's money"?

Not talking about loans but you know that. I've learned you refuse to be honest in discussions so I will not waste my time.

Banks risk other people money without loans? Tell me more!

 

[sparky]

How much money that a bank loans out is not "other people's money"?

That would get us into the fractional banking system

In the end you'll most likely be rather surprised how 'valuation' can be created out of thin air, and is essentially backed by nothing more than those that have faith in it

cue the gold bugs.....

~S~

 

[Toddsterpatriot]

How much money that a bank loans out is not "other people's money"?

That would get us into the fractional banking system

In the end you'll most likely be rather surprised how 'valuation' can be created out of thin air, and is essentially backed by nothing more than those that have faith in it

cue the gold bugs.....

~S~

That would get us into the fractional banking system

You mean the system where a bank holds $100 in deposits and loans out $90, for example?

 

[sparky]

How much money that a bank loans out is not "other people's money"?

That would get us into the fractional banking system

In the end you'll most likely be rather surprised how 'valuation' can be created out of thin air, and is essentially backed by nothing more than those that have faith in it

cue the gold bugs.....

~S~

That would get us into the fractional banking system

You mean the system where a bank holds $100 in deposits and loans out $90, for example?

Fractional Reserve Banking

~S~

 

[Toddsterpatriot]

How much money that a bank loans out is not "other people's money"?

That would get us into the fractional banking system

In the end you'll most likely be rather surprised how 'valuation' can be created out of thin air, and is essentially backed by nothing more than those that have faith in it

cue the gold bugs.....

~S~

That would get us into the fractional banking system

You mean the system where a bank holds $100 in deposits and loans out $90, for example?

Fractional Reserve Banking

~S~

Fractional reserve, where a bank holds a portion of deposits in reserve.

What about it?

 

[sparky]

Fractional reserve, where a bank holds a portion of deposits in reserve.

What about it?

It can work, until someone changes the rules Todd ~S~

 

[Toddsterpatriot]

Fractional reserve, where a bank holds a portion of deposits in reserve.

What about it?

It can work, until someone changes the rules Todd ~S~

What rule changes make it not work?