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To: Hawkmoon who wrote (100877)8/15/2009 2:58:52 PM
From: pogohere  Read Replies (2) | Respond to of 116555
 
"And btw, if a bank had to keep 100% reserves for all of it's deposits, what money would they have to loan out?"

Their own private funds, of course. That was what was supposed to happen with the original Bank of England in 1694, but of course, it never happened. The organizers never put up the gold they had promised to create reserves for the bank.



To: Hawkmoon who wrote (100877)8/15/2009 3:17:34 PM
From: mishedlo1 Recommendation  Read Replies (2) | Respond to of 116555
 
I have no problems with loans on CDs, savings deposits or other such instruments.

And as I noted, it would be fraud to lend out checking deposits. This could EASILY be checked for. And private insurance on checking deposits would be cheap.

Mish


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