Re: Could Someone Please Explain the Money Supply?
[ QUOTE ]
[ QUOTE ]
This is not quite correct. If they have $10k on hand, they can make loans for $100k.
[/ QUOTE ]
Does the money just exist in a checking account?
The part I don't understand is... uh. New money just exists because the banks say it does (on the balance sheet)? Is that right?
[/ QUOTE ]
Sounds pretty [censored] ridiculous, doesn't it?
|