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That is not how things work in the US with banks and loans, they (banks) do actually create "money out of thin air" when they make loans: https://www.investope
by pwg 3y ago
That is not how things work in the US with banks and loans, they (banks) do actually create "money out of thin air" when they make loans:
https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp https://www.investopedia.com/articles/investing/022416/why-b...
Read the section under the heading: "How Banks Make Loans in the Real World".
- subsistence234 3y agocreating money in the sense of lending on margin is very different from the sense in which the Fed creates money.