Quote:
Originally Posted by Matt 26z
If a bank can lend out 10x the cash they've actually got, where does the money go as the loans are paid back?
Is the cash pulled out of thin air to lend and then when it's paid back it evaporates again?
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That is really good question, I haven't never thinked it that way. I have always thinked it just double accounting wise (from bank to customer).