NODE 477ab84dRe: Money supply is fake anyway
"David E. Smith" <dsmith@midwest.net>Sat, 13 Apr 1996 22:45:58 +0800
> > 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/
NODE e4990295Re: Money supply is fake anyway
"Perry E. Metzger" <perry@piermont.com>Sun, 14 Apr 1996 02:04:54 +0800
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
NODE e0ccf01bRe: Money supply is fake anyway
Alan Horowitz <alanh@infi.net>Tue, 30 Apr 1996 22:16:46 +0800
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.