Comments on: Banking 9: More on Reserve Ratios (Bad sound)

By: DUCATI1098100

DUCATI1098100 — Wed, 10 Mar 2010 03:44:50 +0000

Two thumbs up!!! Very educational…Thanks for posting. Surprise so few have seen this…no wonder education is dropping in this country.

By: Myrkul1029

Myrkul1029 — Wed, 10 Mar 2010 03:44:50 +0000

the answer to idazeferina’s question is in video 6

By: Pantz104

Pantz104 — Wed, 10 Mar 2010 03:44:50 +0000

What about high-powered money?

By: Evulmeh

Evulmeh — Wed, 10 Mar 2010 03:44:50 +0000

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”

By: idazeferina

idazeferina — Wed, 10 Mar 2010 03:44:50 +0000

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?

By: sharksniff

sharksniff — Wed, 10 Mar 2010 03:44:50 +0000

evan with the “bad sound” the video was still briliont!

By: BigPurple121

BigPurple121 — Wed, 10 Mar 2010 03:44:50 +0000

So if an asset 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.

By: jackuy12345

jackuy12345 — Wed, 10 Mar 2010 03:44:50 +0000

good job

By: pjblabla

pjblabla — Wed, 10 Mar 2010 03:44:50 +0000

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

By: melaiphanat

melaiphanat — Wed, 10 Mar 2010 03:44:50 +0000

i really like this i learned alot