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> In a modern economy "savings" equals investment This, is a widely held misconception. A bank is no longer allowed to re-invest more than a small proportion o
by ricksplat 10y ago
> In a modern economy "savings" equals investment
This, is a widely held misconception. A bank is no longer allowed to re-invest more than a small proportion of it's customers' savings.
https://en.wikipedia.org/wiki/Fractional-reserve_banking#Reserve_requirements https://en.wikipedia.org/wiki/Fractional-reserve_banking#Res...