[Tilting]

Armstrong is foretelling the near future. Euroland banking will meltdown and that will begin a contagion moving to Japan and finally the US. In the meantime money will seek safety in the US especially stocks. Until finally the US succumbs to its national debt.

[LouieFisk]

"I have been warning about a MAJOR financial crisis starting in Europe"
--
A re-run....

[ConservativeMind]

Banks with $16 million to $122.3 million must reserve 3% of all deposits. They create money that is purely electronic and we do not see it. I deposit $100 and they lend it to you. Now we both have $100 on deposit and the reserve requirement will be $20 for most banks. They then lend it out a third time and there is now $300 on deposit requiring $30.

People who have loans do not have “deposits at that same bank.”

If a bank tried to loan out more than it had in deposits, the Loan-to-deposit ratio would go nuts:

https://www.investopedia.com/terms/l/loan-to-deposit-ratio.asp

What happens is that money lent out becomes a deposit at a different bank.

https://www.investopedia.com/terms/m/multipliereffect.asp

The explanation given by Armstrong is distorted and wrong.

[Revolutionary]

Wow!!! They are so screwed. Spare EU money is all going to come to the U.S. Better return on stocks and bonds and the kicker is the dollar to euro will likely keep rising.