Where Do Banks Get Their Money? Fractional Reserve Banking

Do Banks Create New Money out of Thin Air? **Re-posted after the events of the credit crunch and 700 bailout packages, enjoy the read and learn how the banks got themselves in this mess.** Here’s the story. Banks keep on lending money, but where do they get it from? Do they borrow from bigger banks … Continue reading Where Do Banks Get Their Money? Fractional Reserve Banking

Money Creation – Where Does the Money Come From?

How Banks Create Money continued One of our popular posts located here talks about ‘how banks create money’. You should read that link before this one as it is the necessary part 1 of this series on money creation. A lot of people think it’s a huge conspiracy that banks would create money out of … Continue reading Money Creation – Where Does the Money Come From?