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To: Democrat_media

“banks only need to have 10% of the money they actually lend. so If I make a $100,000 loan then the bank only needs to have $10 k actually , they create the 90,000 $ out of thin air to give me the 100k loan. i then take that loan and deposit it in 10 banks and each of those 10 banks can also create 90K out of thin air , and so on. it’s not real money backed by anything. but there is no crisis the libs say”

To most people this is as hard to understand as Quantum Physics. Worse even, because they think your crazy. But you’ve just described fractional reserve banking, which has been around for 100s of years.

They create money out of “Thin” Air, but when the person they lent the money too can’t repay the loan. The money is then destroyed. Get enough of that going and the economy goes into recession/depression. (i.e.housing crisis).


15 posted on 03/18/2013 7:37:08 AM PDT by desertfreedom765
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To: desertfreedom765
...banks only need to have 10% of the money they actually lend....

That's why they're only taking 10 percent in Cypress. That's all that is there.

19 posted on 03/18/2013 7:52:08 AM PDT by chopperman
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