DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Let's talk about the fractitional reserve banking system

**kuzbaslachek** · 01-05-2012, 05:12 AM

So what happens when Builder Bobs plans fall flat and the stuff he bought with the $900 is now worth $250, Charlies asset the Bank holds is worth half and Amy, due to lack of work, withdraws $500 to live on? What happens to the Banks balance sheets and the money supply then?

The system goes to shit. That's the next lesson.

01-05-2012, 05:12 AM	#20
kuzbaslachek Join Date Nov 2005 Posts 420 Senior Member	So what happens when Builder Bobs plans fall flat and the stuff he bought with the $900 is now worth $250, Charlies asset the Bank holds is worth half and Amy, due to lack of work, withdraws $500 to live on? What happens to the Banks balance sheets and the money supply then? The system goes to shit. That's the next lesson.
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