[palmer]

You believe that if a bank gets $1 in reserves as a gift from the Fed that $5 in deposits suddenly appear in the banks accounts? LOL!

It already did. The banks turning in their debt as "collateral" (soon to be monetized) must do so because they leveraged their actual capital 10 or 20 to 1 and are getting margin calls. The Fed is simply approving the leverage after the fact instead of before. So it is a fact that the Fed's credit dollar is allowing the existence $10 or $20 in bank credit.

[dollarbull]

The problem with Todd's constant denial is that it's getting to be a more and more untenable position in the face of the constant barrage of evidence that the dollar is disintegrating from too many helicopter drops. At some point, it's like trying to convince Baghdad Bob that Iraq is going to win.

A short while from now he'll still be saying there's nothing wrong with fractional reserve banking, and that banks don't create money out of thin air, as gold trades at $2000-$3000/ounce, oil at $200+ barrel, etc. I expect he'll either disappear, or slowly try to change the subject, rather than admit he's wrong (e.g. like he changed his tagline)

[JasonC]

Um, the banks are issuing various margin calls to financial institutions they lent money to, with various financial securities held as collateral for those loans. The margin calls occur precisely because the collateral the banks already hold is declining in price, and their lend-ees are obligated to put up more funds when that happens, to maintain a certain ratio of their own risked capital, to the amounts they have borrowed. The banks are not receiving such margin calls themselves; quite the contrary, they are both issuing them, and seizing collateral when those so called, can't come up with additional funds.

[Toddsterpatriot]

You believe that if a bank gets $1 in reserves as a gift from the Fed that $5 in deposits suddenly appear in the banks accounts? LOL!

It already did.

What already did?

The banks turning in their debt as "collateral" (soon to be monetized) must do so because they leveraged their actual capital 10 or 20 to 1 and are getting margin calls.

I don't think you understand what a margin call means. I'll add it to the list.