Posted 12/12/2014 08:37 (#4235376 - in reply to #4235147) Subject: RE: Banking, one more time....
west central MN
The bank still has to borrow that extra $900 that they lend out, they just borrow it from the fed funds instead of a depositor. They need the $100 from a depositor to stay in line with their reserves. The banks around us actually need more loans and less money in savings as their savings are up and borrowing is down. I know of a couple of different farmers that have either bought or invested in banks and have done very well.