| 1 row - 7/29/2014 20:38
Old MacDonald, according to your theory of how banks make loans( go out back and print money) how could any bank ever go broke? Banks don't print money, gov'ts do. Banks borrow from bigger banks.
Actually governments don't print money, central banks do. The central bank in this country, the Federal Reserve, is a privately owned bank. This wonderful institution creates "money" and loans it into existence to our government. All banks, by the fractional reserve system, loan money into existence (print!) and so you ask how can they go broke? Quite simply when enough depositors try to withdraw their money at the same time. It is not there and it never was. |
Bankers and cattle prices
