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Highly recommend reading Steve Keen's "The Roving Cavaliers of Credit" for a dose of reality on the whole process. tl;dr "banks extend credit, creating depos
by dwd 11y ago
Highly recommend reading Steve Keen's "The Roving Cavaliers of Credit" for a dose of reality on the whole process.
tl;dr "banks extend credit, creating deposits in the process, and look for reserves later"
http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/ http://www.debtdeflation.com/blogs/2009/01/31/therovingcaval...
- SHIT_TALKER 11y agoYou will find no dispute from me as to whether banks actually do restrict themselves to limiting their credit creation to a ratio of their deposits. But that is how it is supposed to work.