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Napanee, Ontario | Actaully i do i have a clue since i work in finance for my day job, but thanks anyways. So what are you disagreeing with specifcially in my post? where did i say banks could borrow their way out of problems? While we are on that point, just like their clients can do, if they have excess reserves, banks can certainly borrow more money against it, or are you diagreeing with that?
"Just like a customer there is such a thing as collateral when you borrow from the FED or any other entity."
Maybe you should read my post a little closer?.... that's what the customer deposit is - the collarteral to borrow for the fractional portion. I specifically said that in the post above, but maybe you didn't read it... here:
"Your deposit becomes their deposit that allows them to create the fractional portion. "
and like i said above, if reserve requirements are lowered, just like they were in the Greensapn era, then the excess reserves become the new collateral - thats what happens when you lower the hurdle. In which case, new customer deposits may not be required for the collateral if reserves are high enough.
So tell me, have you even read the court case i provided? probably not going to bother, i know. But maybe you should.
I am surprised tho, how many bankers are quick to jump on the offensive here -saying I don't have any clue. It certainly seemed from all the banks that needed to be bailed out in the last round of economic calamity, who in fact "didn't have a clue". Maybe you guys need to get a better handle understanding your own industry. I don't have to buy your sales pitch.
Edited by OldMcdonald 7/30/2014 09:06
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Bankers and cattle prices
