RSS FeedsBanking 9: More on Reserve Ratios (Bad sound)
September 13th, 2009
Seeing how reserve ratios limit how much lending I can do.
Duration : 0:8:52
Personal Internet Banking
Personal Internet Banking
Seeing how reserve ratios limit how much lending I can do.
Duration : 0:8:52
September 13th, 2009
You don’t pay him …
You don’t pay him with the money that the bank owes you.
what the bank merely does is transfer it owing you X amount (x being what you loaned) to the owner of the house.
checking accounts are basically an “I owe you”
September 13th, 2009
maybe I should …
maybe I should listen to the further lessons to find the answer, so excuse me for being impatient with the question:
When the bank gives a loan and accordingly issues Notes/Checks … don’t people who have an investment capital start spending it, and usually spend ALL of it for their expenses and not only 10%?
When bank gives me a mortgage, very next day I go and spend it all by paying the owner.
Where that money comes from when bank has only 10% of reserves?
September 13th, 2009
evan with the “bad …
evan with the “bad sound” the video was still briliont!
September 13th, 2009
So if an et …
So if an et becomes worth less than the loan given out and the depreciation is more than the amount remaining on the reserve ratio, you’re in trouble.
September 13th, 2009
good job
good job
September 13th, 2009
You have done an …
You have done an excellent job in diffrentiating solvency from liquidity
that’s the problem in the current financial crisis - people thought banks were not liquid - however, the problem was much graver - most banks were not solvent
September 13th, 2009
i really like this …
i really like this i learned alot
September 13th, 2009
Where is this …
Where is this documented? I want to write something up on this but even though you are a good source I would like to reference the law or regulation itself. Who made this law or regulation? Congress? A committee? Does the Fed set the reserve ratio or someone else?
September 13th, 2009
Still confused… …
Still confused…but ill keep watching
September 13th, 2009
Sal, just wondering …
Sal, just wondering if you write out your scripts before producing the vids?
September 13th, 2009
where is 8?
where is 8?