[Toddsterpatriot]

Exactly. So banks should hold 100% of their deposits as reserves. It's the only thing that can save us.

straw man

What is your alternative to fractional reserve banking? Please spell it out.

[dollarbull]

It's the only thing that can save us.

That was the only part that was a straw man argument.

The 100% reserves requirement is correct. The Bank of Amsterdam was successful doing this for 100s of years. They only fell when they started doing fractional reserve lending.

Of course this means that the role and profits of banks will necessarily shrink. They'll essentially be warehouse, checkbook/bookkeeping services. But that also means they'll not be leaching off the rest of society by creating credit out of thin air and loaning it at interest.

[dollarbull]

What is your alternative to fractional reserve banking? Please spell it out.

Are you getting the picture now? IMB, FNM, FRE = bankrupt. WB, WM, C, MER, MS, BAC, etc = decimated

Fractional reserve banking sets up a exponential system that contains the seeds of its own destruction. We have passed the debt "event horizon".

Fiat money is fast losing its remaining credibility. Houses are being priced in gold terms in Vietnam. This cycle is over. Hard assets only for the next 10-15 years.

[dollarbull]

What is your alternative to fractional reserve banking? Please spell it out.

I love the smell of financial meltdown in the morning:

FRE down 30% FNM down 20% WB down 9% WM down 6%

The alternative is hard assets with no fractional reserve, aka money printed out of thin air.