The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: bond_bubble who wrote (74152)	11/15/2006 11:15:59 PM
From: bart13	Read Replies (1) of 110194

Just $43B reserve is supporting the $3T+ deposit. What and why is there a need to reduce reserve further? The money multiplication is thriving well outside the banking system. The Fed is in the game of helping out the banks and credit games is the simplest answer - not sure what you're driving at... Most of the money multiplication takes place inside the banking system, depending on how you define money.

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