Pksimon2007
Member
- May 2, 2015
- 427
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- #141
Banks can lend reserves TO EACH OTHER.
I can borrow from a bank with no deposits.
My bank can borrow excess reserves from another bank to make sure the loan check does not bounce.
And that's not me borrowing reserves? LOL!
- Or a bank can buy reserves from the Fed. For that matter, they can BUY them from another bank.
So no, it's not you borrowing reserves. You borrowing does not require the bank to do anything in particular with reserves. It's up to the bank, and has nothing to do with you.
Your original contention was that banks loaned deposits. Then you decided they didn't lend deposits, but loaned reserves.
You've admitted you were wrong, and are now trying to find some twist of words that will make you seem not to have been so wrong as you were.
Yes, it's funny how they need to buy or borrow reserves because of my loan.
The loan that you claim is not reserves.
Your original contention was that banks loaned deposits.
That is usually the cheapest way to get the excess, lendable reserves.
- Except we agree now that, based on accounting, it's impossible for banks to lend deposits, right?