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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (11803)12/12/2001 10:49:15 PM
From: Moominoid  Read Replies (1) | Respond to of 74559
 
The whole point is that if every bank only lent out what it got in and there was no reserve requirement then in theory the money supply would accelerate out of control..... The money is created in the banking system not in individual banks. Banks can in some banking systems give additional credit not backed by assets. this is pretty safe when there are only a few big banks as in the UK. or Australia.


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