Posted: Feb 21, 2014 6:33 pm
UtilityMonster wrote:I know a guy who buys this nonsense. Banks engage in a process known as fractional reserve lending whereby they take in deposits and lend it out to other people. Those individuals who borrow the money typically put it in a bank while they wait to use it, and the bank they give it to then proceeds to lend that money out, and on and on it goes.
Wrong. Widely peddled mythology, but mythology it is.
Now, it strikes me as utterly bizarre that anyone freaks out over this.
You've failed to grasp what they are freaking out over.