Abolish the Fed: The Man Responsible for Our Crisis & Thomas Jefferson's Warning

[kickboxers]

banks pay zero interest on chequing accounts and pay prime.

lend at retail or mortage rates. 50% profit spread.

risk is loan default. bad loans. banks been getting too many bad loans. bank is insolvent when too many bad loans or bad investments.

Quote from Renegen:

Full reserve banking ? I respect you Cutten, but do you mean like $1 loaned for $1 in the coffers?

Quite frankly that would deleverage the economy, and thus lead to a massive depression.

I also don't see how a bank can be profitable if it gets 3% a year on a loan. How does it pay everything else?

Maybe you have a better way of explaining things.

 

[Illum]

Even if everything said in thread were true about the Fed.... I would still support them. The alternative is what? Look around the world. As a matter of fact, Thank you Fed. Bernake is in a box, what do you want him to do? Trade around the box