Highly recommend reading Steve Keen's "The Roving Cavaliers of Credit" for a dos... | Hacker News

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		dwd on Nov 12, 2015 \| parent \| context \| favorite \| on: What happens when a culture is driven by the need ... Highly recommend reading Steve Keen's "The Roving Cavaliers of Credit" for a dose of reality on the whole process. tl;dr "banks extend credit, creating deposits in the process, and look for reserves later" http://www.debtdeflation.com/blogs/2009/01/31/therovingcaval...

SHIT_TALKER on Nov 12, 2015 [–]

You will find no dispute from me as to whether banks actually do restrict themselves to limiting their credit creation to a ratio of their deposits. But that is how it is supposed to work.

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