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But banks also make loans, and do fractional reserve banking, so obviously owning bonds isn't enough.
by from-nibly 2y ago
But banks also make loans, and do fractional reserve banking, so obviously owning bonds isn't enough.
- jujube3 2y agoThe Fed doesn't let banks do this because it would be "too safe" https://en.wikipedia.org/wiki/Narrow_banking https://en.wikipedia.org/wiki/Narrow_banking