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So basically all commercial banks are free to issue unlimited loans (and create unlimited new dollars)?
by drexlspivey 5y ago
So basically all commercial banks are free to issue unlimited loans (and create unlimited new dollars)?
- User23 5y agoBasically, yes. There are “capital” requirements, but as far as I can tell that’s basically just laundering their loan business by trading equity with peer banks, which are of course largely based on loan performance.
- deleted 5y ago[deleted]