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But the banks are owed all the money anyways because they own a matching loan for the same amount.
by testvox 8y ago
But the banks are owed all the money anyways because they own a matching loan for the same amount.
- lucio 8y agoThe banks are owed all the money plus interest
- Dylan16807 8y agoRight. And you can make a balance+loan agreement with someone if you want. The issue is trying to hang onto the money while also loaning it out. If everyone immediately took loans in cash form and they never got deposited back to banks, then banks wouldn't be able to create money via loans either.