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Strategies & Market Trends : HONG KONG

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To: Tom who wrote (2170)8/27/1998 2:47:00 AM
From: Tom  Read Replies (1) of 2951
 
Very strange.... When I borrow money, I consider it a liability. Yet when a bank borrows money they consider it an asset.

Oh, I see. They're making more interest when they lend it than what they are charged for borrowing it. So there really is no liability.

And they are permitted to lend-out more money than what they have!?

What a deal! I certainly hope they don't get carried away with this.

Where does all that money come from?

Fractional what?

Can I open a bank?

(good night)
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