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Re: Fatal Flaw in Logic of the Crash Course?

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  • Sat, Feb 21, 2009 - 04:36pm

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    Peak Prosperity Admin

    Peak Prosperity Admin

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    Re: Fatal Flaw in Logic of the Crash Course?

woupie,

Full-reserve banking refers to demand deposits, not savings deposits.  Obviously, if you deposit money in the bank knowing they are going to lend it out, and agree to not have access to it for a period of time, that is one thing.  In that case there is no double-claim on the money.

But, as you point out, if you put your money in a demand account and they lend it out to someone else, that is a double-claim and should be illegal.