To: Toddsterpatriot
"If a bank has $100 in stock, they can loan out $100?" No see that is what PAR means as far as FRB is concerned there are different "SET" valuations (for the purposes of lending power) for different sorts of insturments. Corporate bonds are valued at 1000 per while Municpals are valued at 5000 per and Federal are valued at 10,000 per. (Such is based on the stability of the asset)
Stocks WERE valued at .01 per share (as far as lending ability goes) but now, who knows...
100 posted on
12/10/2010 5:31:59 PM PST by
Mad Dawgg
(If you're going to deny my 1st Amendment rights then I must proceed to the 2nd one...)
To: Mad Dawgg
Corporate bonds are valued at 1000 per while Municpals are valued at 5000 per and Federal are valued at 10,000 per. (Such is based on the stability of the asset)You think that they can value bonds at more than their actual value and then loan out that fake value?
Do you have a link that explains this claim?
101 posted on
12/10/2010 5:34:54 PM PST by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
To: Mad Dawgg
Corporate bonds are valued at 1000 per while Municpals are valued at 5000 per and Federal are valued at 10,000 per. Did you ever find your source for this claim?
145 posted on
12/10/2010 9:28:01 PM PST by
Toddsterpatriot
(Math is hard. Harder if you're stupid.)
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