Re: Money supply is fake anyway
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/
The S&L crisis was not the result of a "run on the banks" syndrome. It was the result of criminal fraud and in some other cases, imprudent bank management. Ie, grown men who thought that, in the long run, they could attain non-economic rates of return on investments. Human nature hasn't changed in 100,000 years.
I've answered Mr. Smith in private mail. .pm "David E. Smith" writes:
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
participants (3)
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Alan Horowitz -
David E. Smith -
Perry E. Metzger