Quote from Daryl Crabtree on February 25, 2024, 3:19 pmWhen a note is originated does money have to come from somewhere or is it instantly created out of thin air when the borrower signs?
When a note is originated does money have to come from somewhere or is it instantly created out of thin air when the borrower signs?
Quote from Robert Hytha on February 25, 2024, 3:21 pmGreat question Daryl, this is some of the magic of fractional reserve banking!
Yes – the money is essentially created out of thin air. Banks only hold in reserve a fraction of their deposit liabilities which theoretically expands the economy by freeing capital for lending.
It’s similar (although arguably less risky) to retail investors trading on margin.
Great question Daryl, this is some of the magic of fractional reserve banking!
Yes – the money is essentially created out of thin air. Banks only hold in reserve a fraction of their deposit liabilities which theoretically expands the economy by freeing capital for lending.
It’s similar (although arguably less risky) to retail investors trading on margin.
Quote from Daryl Crabtree on February 25, 2024, 3:22 pmAmazing!
Amazing!
Quote from sachinbatra on March 8, 2024, 10:12 pmSuggest
https://www.youtube.com/watch?v=PHe0bXAIuk0&t=16s
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