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To: SunSunM who wrote (190098)	8/30/2002 9:33:22 PM
From: yard_man	Respond to of 436258

Mogambu -- >>Of course, this is at the end of a long line of Greenspan tinkering with required reserves, year after year. Taking a look at the current figures, the total required reserves is $38 billion. Total bank liabilities, only looking at mere savings, is $3.9 trillion. So, $38 billion reserves divided by $3.9 trillion in liabilities gives a reserve ratio that is less than 1%! Less than one freaking percent! The textbook example is always ten percent. At less than one percent, what is the point of reserves at all? But Greenspan spent whole afternoons removing reserve requirements for one debt asset class after another, and now he has the banks fully committed, the required reserves down to chump change.<<