MCViewPoint

Opinion from a Libertarian ViewPoint

NO RESERVE REQUIREMENT: The Fed will replace fractional reserve banking with NO RESERVE BANKING and 0% interest rates. Thousands of banks now free to create limitless amounts of loans without any reserves.

Posted by M. C. on August 15, 2021

Oops, missed this one from a year and a half ago.

Banks can lend out all savings holding nothing in reserve to fund withdrawals. If your bank goes belly up, can there be a bank run if there is nothing to run with?

https://www.investmentwatchblog.com/no-reserve-requirement-the-fed-will-replace-fractional-reserve-banking-with-no-reserve-banking-and-0-interest-rates-thousands-of-banks-now-free-to-create-limitless-amounts-of-loans-without-any-reser/

Historically, banks are required to keep 10% of their loaned-out capital in reserves. However, the Fed just took an extraordinary step of reducing that to 0%.

Banks no longer to keep any assets in reserve. This will turn a house of cards into a gargantuan palace of cards.

See the rest here

Be seeing you

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