Comment: banks finance their balance sheets

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In reply to comment: this is false. banks leverage (see in situ)

banks finance their balance sheets

After their initial capital from liabilities.......they borrow short term and lend long term. That is why they are inherently insolvent. I don’t know how to explain a system to someone who has a flawed understanding of the system.

But let me make sure I get you……according to you there are no bounds to the amount of lending the system can do as long as the fed keep feeding the system with the reserves……Then what the point of having reserve requirements?