Banks lend out more money than they have. They report to their account holders that they have the money on hand. That is both fraud and a ponzi scheme. This is

Banks lend out more money than they have. They report to their account holders that they have the money on hand. That is both fraud and a ponzi scheme. This is the root of the entire problem. Until fractional reserve lending is frowned upon internationally, as money laundering is, this problem will not end. Of course, there is no political will to end fractional reserve lending. Both politicians and those who elect them demand economic growth today, and in as much volume as possible. As we are seeing now, the results of a bust only serves to aggregates this problem while during a boom the system appears to be fully functional and healthy. So build your companies for wealthy bankers.