| HappySqurriel said: Money invested in a bank account generally is used towards a banks capital requirements which tends to allow a bank to loan out (typically) 10 times as much money; and this money is typically used to purchase homes or consumer goods. For every dollar put into the bank it can have 10 times the impact on the economy as a dollar spent. |
I don't know why, but suddenly I remembered this post. And it seems very strange to me. You're saying that for every dollar a bank actually has, it's allowed to loan out ten dollars? Banks just get to hand out imaginary money? Basically print money to loan at interest?
I'm far, far from an expert here, but I have to ask if you're 100% sure you don't mean they can loan out 90 cents of every dollar deposited, with ten cents laid aside for people who actually want to withdraw their money.
http://en.wikipedia.org/wiki/Reserve_requirement
Tag (courtesy of fkusumot): "Please feel free -- nay, I encourage you -- to offer rebuttal."
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My advice to fanboys: Brag about stuff that's true, not about stuff that's false. Predict stuff that's likely, not stuff that's unlikely. You will be happier, and we will be happier.
"Everyone is entitled to his own opinion, but not his own facts." - Sen. Pat Moynihan
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The old smileys: 
; - ) : - ) : - ( : - P : - D : - # ( c ) ( k ) ( y ) If anyone knows the shortcut for 
, let me know!
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I have the most epic death scene ever in VGChartz Mafia. Thanks WordsofWisdom!
