Most people believe that banks safeguarded their deposits in their vaults and maintain a liquidity ratio on or about 100%. In other words, banks only lend out the money which they had on deposits. However, today’s banking system reality is far different, posing a great risk for all economies going forward. What is a Fractional […]
Tag Archive | "Minsky Moment"
Fractional Reserve Banking System
Posted on 11 July 2012.
Posted in Housing Bubble, US Dollar CollapseComments (1,594)
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