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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: pater tenebrarum who wrote (85556)2/16/2001 1:59:41 PM
From: Thomas M.  Read Replies (1) of 86076
 
bank reserve to asset ratios and loan loss reserve to asset ratios all hit multi year lows late last year.

This is something I have been wondering about for a while, sparked by this anecdote:

Message 15074963

I might be mixing different numbers here, since I have only a scant understanding of banking, but I believe bank reserve ratios were 25% in the 1800s, 18% after 1913, 8% in 1991, etc. It seems like the banking system is becoming more highly leveraged as time goes on. Yet, who is to say when this becomes a problem? It seems like an even more fruitless exercise than waiting for a BK.

Tom
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