Skip to content
Off Topic

User Stats

1,922
Posts
578
Votes
Dale Osborn
  • Mobile Home Investor
  • Spanaway, WA
578
Votes |
1,922
Posts

Finance or Bankruptcy?

Dale Osborn
  • Mobile Home Investor
  • Spanaway, WA
Posted Nov 27 2010, 13:28

Banks at one time used to create money from thin air on a small basis. For every dollar that you deposit, the banks were allowed to loan out 9X that amount. Now for the smaller banks they can take each dollar you deposit and loan it out 12X. But, the larger banks like Bank of America and Citigroup along with others are allowed to lend out 42X each dollar on deposit. Is this what the finance industry is all about or is it a conspiracy to bankrupt the USA?