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E SD | Specifically 9x loan to deposits and 3% deposit base, your whole post deals in hyperbole and really speaks a dis-service to how independent and community banks function. There was no bailout for the many thousands of community banks, as I said before when they got in trouble they were bought and sold. When you say "excess reserves" whats your definition of that? Loan Loss reserve, Tier 1 Capital, undivided profits, surplus, trying to get a handle on the way you are thinking here because there is a lot of mis-information.
As I said, go through the Call reports and actual factual current bank data and show me where you are coming up with this huge leverage ratio. Most banks today are flush with cash and would love to increase lending because the alternative is crap.
Looked up one, First Dakota National Bank #4028 as of 6-14
855M loans/936M deposits. loaned out around 91%
To say that is possible for them to lend out 8,424M (9x deposits) or 29,455M (3% core deposit base) is ridiculous.
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Bankers and cattle prices
