Quote:
Originally Posted by Snake Doctor
HELLO. MCFLY!!!!!
All that page has is the number 7.4 trillion on there. It has lots of things I explained before, such as the liabilities for nationalizing fannie and freddie and backstopping losses from certain financial institutions.
Nowhere does it say that banks are allowed to loan out 10 times the $700B they received in direct capital injections from the Fed.
Please show me a definition from any reputable source that says fractional reserve banking allows banks to loan out 10 times their deposits, rather than 90% of their deposits.
If you can't do that, then admit you were wrong or STFU.
|
How stupid can you get?
So how does 700 billion buy up 7.4 trillion worth of assets, unless, let me think about this for a minute, hmmm, Ahh I think I've got it! They create the money out of the 700 billion.
Since you consider wikipedia a "reputable" source you'll find plenty of links here
http://en.wikipedia.org/wiki/Debt-based_monetary_system