4 ms·

Fractional reserve banking

• adgjlsfhk1 4y ago
  Not a ponzi scheme. It doesn't rely on growth to survive.
  • orangepurple 4y ago
    You are right. However, over time systemic risks grow with it. Your point still stands.
  • Ekaros 4y ago
    It kinda does. Fractional reserve system means there is more debt that there is money. And if interest rates are not below zero. There will be always more debt until someone defaults. Actually even full reserve with debts would mean there is more debt than there is money...