[Toddsterpatriot]

FRB is the practice of banking that allows a bank to lend out nearly all of its liquid assets.

If a bank has $100 in stock, they can loan out $100?

While Corporate bonds were valued at 1000 each.

If a bond is worth $1000, it's valued at $1000. What does that have to do with banking or lending?

Giving that sort of unrestricted money making (expansion) capabilities to a handful of unelected people is madness.

Which people? Bankers? Depositors? Lenders?

[Mad Dawgg]

"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...