Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Ilaine who wrote (11792)	12/12/2001 10:51:59 AM
From: LLCF	Read Replies (1) of 74559

<No, you're missing the point. If a bank loans only deposited money, it's not creating credit. > No, that's not my point at all... and is different than this point: <The person who deposited the money can't get it back if it's loaned out, right? > You were asserting that banks couldn't loan out their deposits [ie. were black holes that sucked up all the economy's money]!!! Read your post and taking that money and banking is a good idea :) If you want to discuss the problem of demand deposits vs time deposits and loaning those out that's fine, but that was not your original claim. DAK

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