Comment: The scam of fractional reserve banking.

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The scam of fractional reserve banking.

Here is the deal. Banks everywhere are broke because many of the loans they have made can't be collected. So those in power (bankers and politicians) are trying to stick to losses on anyone they can except for themselves. Their choices are (1)bankruptcy filings for banks and let the owners take a 100% loss and just pay depositors what is left, sticking them will some loss too for their gullibility in keeping money in corrupt organizations;(2)sticking it to taxpayers by having them bail out banks which is what they have been doing to date to prevent the bank owners from taking the loss for their stupidity; or(3)pulling a stunt like they are trying in Cyprus where they steal from depositors to prevent the bank owners from taking the loss for their stupidity.

It isn't a matter of saving the banks. It is a matter of who takes the losses, and given that the bankers are the ones who pull the strings on politicians and governments, it will take a revolution to keep them from sticking it to the public in some way, shape, or form.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.