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<p>[QUOTE=&quot;InfleXion, post: 1313266, member: 29012&quot;]It&#039;s always nice to see people agree on something hahaha. Guano corrected a post of mine somewhere else about fractional reserve banking. I had asserted it was loaning out 90% of customer funds in a bank, but the correction was that they have 100% of the funds and loan out 900% of what they have. My understanding has been that only 10% of customer money is ever called upon so the other 90% is free to be wielded as the steward of the money pleases. However I do think I got confused in labelling this activity as fractional reserve banking, which has more to do with leveraging assets. I&#039;m thinking they are 2 different things that have a similar effect. I&#039;m really not sure how this can work though, as nobody in their right mind would accept fabricated collateral. Please educate me as well <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie8" alt=":D" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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