17 Dec
2003
17 Dec
'03
11:17 p.m.
Banks "invent" money on a daily basis.
Really? Since when?
That's something from college-level economics. If a bank has reserves in excess of their reserve requirement, they can loan out the excess, several times, gambling that they won't be made to provide all of that alleged money in a more negotiable (outside of the bank system) form, like cash. As I understand it, that's where a lot of the 80s Savings & Loan problems came from - too many people wanted their 'money' in a more negotiable form too quickly, and they had to fold. (OTOH, it's been a long time since I took that college-level economics course.) dave --- David Smith, Intellectual Terrorist http://www.midwest.net/scribers/dsmith/