SR60: Fractional Reserve Lending
The Market Ticker ® - Commentary on The Capital Markets
Posted 2012-07-18 12:00
by Karl Denninger
in Other Voices
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SR60: Fractional Reserve Lending
 
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User Info SR60: Fractional Reserve Lending in forum [Market-Ticker]
Andysvw
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I like the shorter vids. Its a nice bite size nugget.
Shanearthur
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Would have been nice if he references which bill/year allowed for fractional reserve banking. Great vids otherwise, though.
Duc888
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So in all actuality that is how / when the Ponzi began, am I correct? "Money from nuthin".

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...burp
Smacktle
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Got all the emails for the recent vids and finally watched the first one. Only 2,000 hits or so. Not many people care.

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The faults of the burglar are the qualities of the financier.
- George Bernard Shaw
Obseedian
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I thought that we had agreed that the problem was not necessarily fractional reserve banking but the lack of collateral behind that lending.

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Would you give your money to these banks? http://bankimplode.com/list/troubledbank....

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Genesis
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Yes.

I don't agree entirely with Bill on this; it IS filed under "Other Voices"

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Pika-steph
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Not to split hairs, but it really is a very trivial differentiation between 'fractional reserving' and the reality of 'infinite, unrestricted leverage.' One is the initial process that led directly to the other. Fractional reserving ceases being fractional when the basis goes to zero.

Just saying.

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Genesis
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But dividing by zero is so profitable!

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Pika-steph
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That's certainly what they THINK!

You know, I swear, when I posted my above statement, I nearly added the divide by zero poster. I know it's become this funny thing on TF, but that is literally what these idiots are doing.

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Stop the Looting; Start Prosecuting - http://www.FedUpUSA.org/
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"The only regulation that really works is failure."--Rick Santelli
Colester
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The fractional reserve issue vs. the issue of who controls the money power in the first place...

One thing at a time.
Burya_rubenstein
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I still fail to see why we should starve if there isn't "enough" money in the system. If you're in debt, maybe. But "money" is just a bookkeeping system. The important thing to whether we starve should be whether there is enough food to go around.
Uwe
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KD wrote..
But dividing by zero is so profitable!

Well, they haven't divided by zero yet, but the denominator keeps getting smaller. When it does reach zero, we'll end up with something like this:



-Uwe-

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“Whenever the legislators endeavor to take away and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any further obedience.” - John Locke
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