(financiële) toestand in de wereld

IMG_20230313_195133_099.jpg
The Fed knows something criticial here: fractional reserve banking is vulnerable. If a bank lends out 20-30X as much as it holds in demand deposits, it only takes 3-5% of depositors to panic withdraw to cause a bank crisis.

It's all about psychology, not about financial invincibility.

It was the Fed printing money (inflation) that caused the problem in the first place; that led to the Fed raising rates sharply to counter inflation (that it caused)...and now the solution is to print more money to bail about the banking system. Which is, of course, inflationary.

A vicious cycle.


Mike
 

Forum statistieken

Onderwerpen
4.470
Berichten
499.712
Leden
8.630
Nieuwste lid
Rene Collaer
Word vaste donateur van dit forum
Terug
Bovenaan