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This is a perfect reminder for everyone about how the fractional reserve banking systems works and where the limitations and risks are. We as a society (all of
by chinathrow 11y ago
This is a perfect reminder for everyone about how the fractional reserve banking systems works and where the limitations and risks are.
We as a society (all of us including the rich and the poor, the bright and the dumb) need to rethink how we allow the banks to (be it accidentally or not) destabilize a financial system only by the volume of its debt.
Some say capital controls are only of temporary measures but still, I feel that this is something which must be avoided by future rules and regulations.
https://en.wikipedia.org/wiki/Fractional-reserve_banking https://en.wikipedia.org/wiki/Fractional-reserve_banking