Quote:
Originally Posted by onwebcam
You are basicly saying the same thing. Only they were loaning out into the 100s and likely still are. As I said earlier part of their trickery is to loan you back your own deposit and keep your cash in reserves. Only when you withdraw actual cash does it affect their reserves.
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No, I wasn't saying the same thing. Lending from what you have got is totally different thing than lending from what you don't have.
But yeah, bank can lend 90 % of your deposits to you and keep 10 % in reserves. Although, not very useful practice regarding the customer, as you have to pay interest. So, no motive to do so.