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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (13670)	5/11/2004 10:08:18 PM
From: Peter Joseph	Read Replies (1) \| Respond to of 110194

What the Mogambo guru says: .. And if there are two things that idiot Americans believe, it is that technology stocks always go up in value and that houses always go up in value. .. He notices a lot of eerie parallels between modern America and 18th-century France. .. But turning to Barron's and gong to the data on the banking system, we note with wry amusement that Required Reserves are only $42 billion, and that Total Reserves is not that much better, coming in at $44.3 billion. So how much money has been loaned against that $44.3 billion? Somewhere north of $4,600 billion. So $44.3 billion has been multiplied by 109 times! Hahahaha! If there was ever anybody who doubted that the Federal Reserve and the banking system are killing us, this ought to shut them up! Hahahaha! That means that in the last 44 years; the fractional reserve requirement has expanded from the textbook example of 10:1, to 15:1, and now to 109:1! One lousy dollar of reserves has created $109 in new lending! Hahahaha! This is insane! .. dailyreckoning.com Long winded article, and most of the points he brings up have been hashed here. Still a compelling read, and Mogambo guru's writing style always cracks me up. <g>