Comment: You are generally schooled in old textbook financial parlance.

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You are generally schooled in old textbook financial parlance.

Submitted by Mark Twain 06/16/2011

Get with the times me lad. The times, they are a changing. Textbooks be not fer me. Hitch yer wagon... bypass Congressional appropriations, debt ceilings, leaky roofs & $16 trillion "loans out of thin air."

Emergency Financial Stabilization Act, 2008 eviscerated fractional reserve banking. "Financial Stabilization Act, 2008" removes "Fractional Reserve" requirement. Such a pesky rule. Leverage was over 200 : 1 at the FANNIE Mae & FREDDIE Mac twins (aka: FNM & FEE). Bank average "Fractional Reserve" was reportedly about 3% (not 10%) when bankers lost faith in their own faith based currency, 2007.

You astutely wrote about 10 x fractional reserve banking. Some still speak of it. It was cherished banking legal fiction for centuries. You generally wrote up in college financial text book fashion along the lines many reminisce. It is legal fiction history that many bank still pretend to follow. Just dated. Old school. Don't let it get you down. We all might feel we are an underdog at times. Even former sitting President Clinton went before news reel cameras begging folks to give what they can to banks. Clinton lectured banks could increase loans 10X more than we gave them, if we only had confidence... faith. Bizarre.

Since 2008, even shock & awe pales is comparison to Wizard of Oz banking. Toto nervously waits Dorothy. Toto will accompany her back home to Kansas. They both long for mere tornadoes & dust storms. "There is no place like home." [Wish intently. Click heels.]

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul